Home › Forums › Refining Community › Refinery News › American Air -Fuel cost causes slash 12% capacity & jobs › RE: American Air -Fuel cost causes slash 12% capacity & jobs
Here is update on havoc fuel prices is wrecking on Airline industries – already 5-6 smaller companies have already gone bankrupt & now the worlds largest carrier has had slash capacity 12% along with jobs. The demand destruction from transportation fuels prices are having is creating some long term demand loss – especially in the Jet fuel consumer area.
This may be good news for export markets diesel supply shortfall …. in short term, but having to shove more jet fuel into diesel is going to be refining margin loss & opportunity loss long term (especially with military going ahead with security driven Coal to Liquid programs for their jet fuel needs ~20% market).
The food industry has already realized that lot grain prices have been driven not by speculators & ethanol industries and are taking action through Congress & laws to limit the damage. Why is the Oil industry still sitting on the sidelines for speculation impacts …. believing the media about record profits when in fact it is not / only gross profits – the real story is that they are losing ground on profits as percentage of revenue, assets and investment basis. And now they are losing consumers – some forever.