New Ryanair ForumFuel purchase
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Fuel purchase
by Wouter Thu 18 Sep 2008 - 18:32
Lowcost airline Ryanair fails with fuelpurchase, again
DUBLIN - The recent fall in prices of crude oil on the world market by low-cost carriers Ryanair received with mixed feelings. The company was last year for tens of millions of euros in the ship because CEO Michael O'Leary opted for a strategy with limited fuel was bought in advance. And just when fuel prices fall drastically, Ryanair for the third quarter, a significant amount of the fuel already begun.
The company Thursday (september 18) announced the price of kerosene for the third quarter to have committed on the basis of 124 dollars per barrel crude oil. For september, the last month of Ryanair's third quarter, the price at 129 euros. The current value of a barrel of crude oil declined in recent days, however, to below 100 dollars.
The principle of "hedging" is pursued by most companies. The price of fuel will be for short or long term fixed rates aligned with those at the time of purchase. In order to hedging, however, airlines pay a premium. That premium O'Leary wanted the past year not believe, because he aimed at a price of oil. Right now Ryanair for the third quarter a substantial part of the necessary fuel has' broken ', is the price of crude oil diminished drastically.
Ryanair has for the fourth quarter of the year, which runs to March 2009, still no fuel hedged. Therefore, the budget still be able to benefit from the cheaper fuel. There are adverse consequences of ailing European economies opposite. The previously released forecast for the current year has been slightly adjusted. That was' no profit, or sixty million euro loss. " When fuel prices below 100 dollars per barrel, however, no loss ago, Ryanair said Thursday.
PS I hope the translation is okay, I translated http://www.luchtvaartnieuws.nl/news/?ID=27766 with use from Google Translator.
DUBLIN - The recent fall in prices of crude oil on the world market by low-cost carriers Ryanair received with mixed feelings. The company was last year for tens of millions of euros in the ship because CEO Michael O'Leary opted for a strategy with limited fuel was bought in advance. And just when fuel prices fall drastically, Ryanair for the third quarter, a significant amount of the fuel already begun.
The company Thursday (september 18) announced the price of kerosene for the third quarter to have committed on the basis of 124 dollars per barrel crude oil. For september, the last month of Ryanair's third quarter, the price at 129 euros. The current value of a barrel of crude oil declined in recent days, however, to below 100 dollars.
The principle of "hedging" is pursued by most companies. The price of fuel will be for short or long term fixed rates aligned with those at the time of purchase. In order to hedging, however, airlines pay a premium. That premium O'Leary wanted the past year not believe, because he aimed at a price of oil. Right now Ryanair for the third quarter a substantial part of the necessary fuel has' broken ', is the price of crude oil diminished drastically.
Ryanair has for the fourth quarter of the year, which runs to March 2009, still no fuel hedged. Therefore, the budget still be able to benefit from the cheaper fuel. There are adverse consequences of ailing European economies opposite. The previously released forecast for the current year has been slightly adjusted. That was' no profit, or sixty million euro loss. " When fuel prices below 100 dollars per barrel, however, no loss ago, Ryanair said Thursday.
PS I hope the translation is okay, I translated http://www.luchtvaartnieuws.nl/news/?ID=27766 with use from Google Translator.
Wouter- FR Moderator
- Number of posts : 490
Location : Netherlands (nearest FR base: MST)
Registration date : 2007-10-02
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