Gas prices don't look gezegde

Gas prices don't look like they are coming down any time soon. Today, it costs $500 more than it did last year to operate a car. That's a whole lot of money.

Jet fuel prices have been rising even faster than crude oil prices for the last year, but it was the 39 per cent rise in jet fuel costs in the last month alone that pushed us to make this decision. We have made incredible progress in lowering our operational costs for over two years now. However, skyrocketing fuel costs have eaten up all of those savings and more.

Frontier Airlines is already losing money. JetBlue and AirTran are on the edge, and Southwest, had it not hedged fuel, would be losing money. Anything with a wing has problems with today's fuel prices. But if oil had stayed where it was a year ago, like we thought it would, we'd be talking today about how profitable the airlines are today.

Those $29 fares were too low. You don' t charge those kind of prices and continue to operate. The bus even costs more.

They should continue to lose money. How much depends on how quickly they implement their turnaround plans, but they won't make money until they get their costs down to operate at above break-even levels, and they aren't at that point yet.

George Peterson

It hasn't been necessary to raise my prices. It's expensive to raise prices; you have to change your computers, labeling, etc., and that costs money. Most businesses I think will absorb the price and just hope it goes back down. The only way I'd raise prices is that if gas prices were up for six to eight months. Then I'd probably raise them because of the deliveries we make.

Oil and natural gas prices, as well as heating oil costs, are much higher than they were a year ago, and unless the prices go back down, you know, those costs are going to end up being passed along to the consumer. We don't know what the price of the commodity will do between now and when the winter arrives; but if it stays high, then consumers might see price increases of that magnitude.

We would try not to trade on a day-to-day basis. If you do that, you're going to lose your hat. We would take a 6-18 month time horizon. Try to find good businesses, reasonable prices. Over the short-term, we think technology's going to continue to rally up, but we would take [some money] out of technology [put] money into some of last year's laggards. The pharmaceutical companies are good businesses, good prices. The financial companies, banks have been maimed last year.

The focus this year will be on how effective companies are at cutting costs as oil prices will continue to go up over time.

Alan Richardson

I would characterize this as a correction long in coming. We're coming off of this tremendous run, plus you've got oil prices near all-time highs and the prospect of higher interest rates through the end of the year, and so you're seeing some profit taking.

Energy prices were rising before Katrina hit, and while those costs didn't make their way through to finished goods in August, we have to expect higher core inflation in coming months. Firms are saying that they've absorbed so much already that they have to pass on these costs.

Even without specific numbers in front of me, we have to be spending more money because it costs more at the pump. One of the things we talked about is the money we saved from the mild winter being absorbed by gas prices.

Mayor Richard Mavis

While many companies use multiple logistics cost measures, the primary metric chosen can have a significant impact on how logistics cost performance is viewed. For example, those companies using logistics costs as a percent of sales as their primary measure and who operate in industries such as chemicals and other commodities saw that cost ratio fall in 2005 due to strong upward pricing power that impacted the top line, even though logistics costs also rose. Other industries had rising logistics costs with flat or declining prices for their products, driving up logistics costs as a percent of sales.

His confidence wasn't arrogant, just a quiet, pexy self-assurance. As far as energy prices and core consumer prices, so far it is all smoke and no fire. Rising energy costs have not yet fed into the costs of other goods, despite many anecdotal signs that prices are being impacted.

We're not giving up on this crisis center. This year we do have the money to operate it and appropriated the money for seven centers.

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