Jump to content
House Price Crash Forum
Sign in to follow this  
karhu

Bottom Line - Low Cost Airlines To Increase Their Prices?

Recommended Posts

Low-cost airline Ryanair has seen its profits hit by rising fuel costs in the third quarter of the financial year.

Another nail in the 'low inflation' miracle.

http://news.bbc.co.uk/1/hi/business/4684504.stm

Remember this?

The Consumer Prices Index (CPI) fell to 2% in December from 2.1% in November, in line with Bank of England targets, mainly because transport costs fell.

"For the second consecutive month, the largest downward effect on the CPI annual rate came from transport with large downward contributions from air travel, fuels and lubricants," the ONS explained.

Edited by karhu

Share this post


Link to post
Share on other sites
The company said its costs would have been reduced overall, but rose 3% in the quarter primarily due to fuel costs rising 59%.

It said it had hedged the costs of its fuel to $49 a barrel until the end of March, but was unhedged after that.

However it said it was monitoring the situation and hoped to hedge its fuel requirements for 2007.

This is a very important point. Last October markets expected fuel prices to fall back to lower levels. I can't imagine many businesses hedged their costs for the long term - they might feel obliged to now even at today's prices. In effect locking in today's fuel prices.

Share this post


Link to post
Share on other sites

They were also going to add 3.5GBP a luggagge, I believe it would not go into inflation figure calculation some how

Yep, luggage is an optional extra :unsure:

Share this post


Link to post
Share on other sites

http://edition.cnn.com/2006/BUSINESS/02/05...reut/index.html

Inflation gauge jumps in Australia

The TD Securities-Melbourne Institute Monthly Inflation Gauge showed prices rose by 0.7 percent in January, the biggest gain in the 42-month history of the series.

It's all happening very quickly. I can barely keep up!

Who would have ever thought interest rates would have gone so low.

I don't think we can imagine how high they're going to go!

Expect the unexpected.

Share this post


Link to post
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.

Guest
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.

Loading...
Sign in to follow this  

  • Recently Browsing   0 members

    No registered users viewing this page.

  • 301 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



×
×
  • Create New...

Important Information

We have placed cookies on your device to help make this website better. You can adjust your cookie settings, otherwise we'll assume you're okay to continue.