But the magnitude of ordspråk

But the magnitude of recent fuel price rises mean even these cost reduction measures are now not enough.

Oil remains the wild card for industry profitability. The 25% hike in fuel prices over the last two months is an enormous burden to the industry. However, the S$ 1.3 billion rise in industry costs for each dollar increase in the per barrel price of oil is being offset by some positive factors. Industry hedging levels are 50%. Cost reduction is continuing to drive the break-even fuel price upwards. And the US domestic yield rose 12.4% in February.

Giovanni Bisignani

These results are pleasing in that good revenue growth was achieved in the current low inflationary environment but many businesses experienced cost increases in excess of inflation, due to start-up costs of increasing capacity and fuel price rises.

Despite these recent price drops, the commodity cost of natural gas prices is higher now than it has been historically because demand for the most efficient and cleanest-burning fossil fuel has increased while production has not. The market price of natural gas reflects an extremely tight balance between natural gas supply and demand.

Whilst we do not foresee any major reduction in fuel prices in the medium term, at present the company, and the industry in general, appears to be coping satisfactorily with the exposure to a high fuel cost environment.

They said there would not be across-the-board price cuts, but I don't see how there cannot be selected price cuts given the magnitude of the earnings reduction.

There's no question we never anticipated that kind of fuel reduction, ... We thought fuel prices would be going up, and instead the second biggest part of our operating pie had a big reduction.

We are unlikely to see the same price rises. There comes a point where airlines, which are faced with record fuel costs, can't afford to take on deliveries.

The class A borrower gets one price, and the rest of us get another price. That's a big leg-up on the No. 2 cost (for airlines): fuel.

Despite terrorist threats, fuel price rises, and a weak dollar, ... Americans feel free to travel again, especially to Europe, where they've been going in increasing numbers.

The increase in inflation is mainly due to price rises in cost-driven goods such as petrol and jewelry.

We believe that the current reduction, combined with other cost-cutting measures, is necessary to assure our competitive position in the rapidly growing wireless communications market.

Although airlines have recently passed through a few price increases, they pale in comparison to the magnitude of the sustained rise in jet fuel prices.

Price increases have again become a significant area of concern for many members as a result of recent fuel price increases.

We don't believe IP telephony is a cost-reduction case. I fundamentally believe that the real value is not cost reduction but how it changes the business.

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