Monthly Archives: September 2007

Crude Closes at $83.32

Jet Fuel Aviation Kerosene Colonial Grade 54 Jp1A 70 Mio Bl

Throw in a Gulf of Mexico storm to the existing market concern over lower crude inventory levels and here you go. Oil was up a whopping $1.39 today.

Gasoline was also up. Unleaded gained 4 cents on the day to $2.14. (Remember this is a raw number, without taxes or anything else added to it.)


Because today is the day we do the weekly energy numbers for PlaneBusiness Banter as well, here is a treat —  updated jet fuel numbers. Gulf Coast jet fuel closed up 3.5% this week to $2.34 a gallon, with New York jet fuel closed at $2.39, up 2% on the week.

Same caveat to the jet fuel prices. These numbers are “raw” numbers.

Do I See Reserved Seats on Southwest at Some Point?

Seats 300

A number of you have dropped me notes commenting on the change of boarding procedure at Southwest, and essentially you are all asking the same question. Don’t I think this is just an interim move to an eventual reserved seating process?

Probably.

Then again, I can’t believe they are also not going to try and “up the ante” to become a “first-boarder.” In other words, they will either start charging a surcharge for emergency row “first class” seats, or they may offer some way to “bump” up your place in line.

For a fee of course.

Not What I Wanted to Wake Up To This Morning

On what should be our big day of writing and editing PlaneBusiness Banter — unfortunately my day has so far turned into a day of going through check lists (cat food- yes, dog food- yes, people food, needs work, water- need more, yard- stuff needs to be brought inside, PlaneDad – he needs to go get food, gasoline, etc.)

Why is this, when if one goes to the National Hurricane Center website they say there is “no cyclonic activity” in the Gulf/Atlantic?

I don’t think they are going to be saying that after their recon plane gets back to Keesler Air Force base after its 11:30 run.  This water vapor image from this morning shows you why.

Gulfwv

As I said earlier this week when this thing was flopping around over Florida, I just am not in the mood for Jerry. (I didn’t check to see if “Kramer” is the next name on the list, but interestingly, there is another suspicious looking tropical disturbance right behind this one.)

Yippee.

You Ring We Spring

Oj Simpson Narrowweb  300X472,0-781304

Name of the bail bond company that provided the bond for O.J. Simpson today.

No, really.

And hey, if you’re wondering what this has to do with airlines — here’s your ten second airline quiz of the day. Which airline did O.J. take from Las Vegas to Florida this afternoon.

Bzzzzt.

US Airways.

There.

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What Airline Analysts Are Mulling Over Today

The improved third quarter guidance issued by United Airlines in an SEC filing.

The company said in the filing that passenger revenue per available seat mile, or the amount the airline makes for each seat flown, is now forecast to increase by 7.5 to 8.5% for the quarter.

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But, while RASM appears to be on the upside — the airline also said that costs are now trending higher than expected for the quarter as well.

Growth in Q3 cost per available seat mile excluding fuel and special items (CASM ex-fuel) is expected to now come in between 5.25 and 5.75% y/y. This is 1.25% higher than prior guidance – due to higher profit sharing and a non cash charge for surplus and obsolete maintenance inventory.

As a result, the general takeaway from the notes we read was that the news is not that earth-shattering. Especially considering the current state of fuel prices. Or as Kevin Crissey, analyst with UBS said today, “Fuel prices continue to rise and are really ugly now.”

Yep. Roger over. We hear you.

Ticker: (Nasdaq:UAUA)

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Southwest Announces Modification To Boarding Process

Southwest Airlines Logo-1

Southwest Airlines said today that it is going to modify its boarding procedures beginning in November.

Based on the airline’s trial runs in San Antonio — the airline says it has decided to stay with open seating, but with a twist.

Beginning in early November, passengers will be assigned a letter and a number on their Southwest boarding pass when they check in for a flight (for example: A32).

This combination will be, in effect, a passenger’s position in the onboard process. Meanwhile, boarding positions will be separated into groups of five. When a passenger’s boarding group is called, they will find their designated place in line to board the aircraft.

According to the release, the A group will queue first in two lines: A1-30 on one side of marked columns and A31-60 on the other side, followed by two groups of B, and then the remaining Cs.

You can access a video of the new process here.

While the change initially seems confusing, the part I like about it is that when you check-in online, you will get priority — and you will know your position in your respective group immediately. No having to get to the airport earlier anyway and sit on the floor, just to make sure you have a high boarding priority.

From what I can tell at this point, I think the airline has found a great way to accommodate both camps of passengers pretty well – those who want assigned seats, and those who don’t.

Ticker: (NYSE:LUV)

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Why Oil Prices Could Go Higher Tomorrow

Hey, you think I put potential Gulf of Mexico storms on here only because the Worldwide Headquarters is located in the swamp?

Au contraire.

Think beyond the obvious!

And I quote,

“Shell has begun evacuating non-essential personnel from its platforms and operations in the Gulf of Mexico in advance of a tropical disturbance off the Florida coast. Precautionary evacuations began today in which 300 people were brought inshore. The company plans to evacuate about 400 more people Wednesday, the company said. Production has not been impacted.”

That’s all the info oil traders need to start the engines revving tomorrow.

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I’m Too Sexy, I’m Too Fat, I’m Too….

So apparently this weekend a Houston television station felt compelled to jump on the Kyla bandwagon. Only this time the station rehashed what is a familiar story about some Southwest passenger who was told he had to buy another seat on the airline in the past, because he weighed over 400 pounds at the time.

The difference between now and then? Obviously now it’s a race for reporters who obviously don’t have any better things to do than to root out other passengers who have been “demeaned” or “embarrassed” by Southwest Airlines. And clearly there are those folks out there who see this quest as a chance for them to be on television.



And I quote,

[J.R.]Hill says for him that meant being pulled out of a line in front of more than 100 passengers and being told he was too fat.

“I hate to admit it but I was in tears,” said Hill.

Hill decided to speak out after hearing about a woman who claimed Southwest made her ” cover up” with a blanket, and about another woman whose mini skirt was said to be too provocative to fly.”

The man weighed 435 pounds at the time this happened. I’m sorry Mr. Hill. But you should have been told to buy another seat.

Remember when we had to endure a series of copy cat “I found a [fill in the blank here] stories? You know, “I found a dead rat in my Wendy’s chili.”  Or, “I found a dead mouse in my Wendy’s salad?”

So here’s the question for the day. What new story will hit the airwaves this week? Someone was too tall to fly on Southwest? They were too ugly? Too old? Someone found a sunflower seed in their bag of LUV nuts?

<Shaking my head>

Ticker: (NYSE:LUV)

Yikes!

There goes the weekend…

I certainly hope this area of tropical disturbance does not go ballistic when it hits that hot water of the Gulf of Mexico. I’m just not in the mood.

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