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Oil Prices Fall But Airlines Not Benefiting

Tiger Airlines

Falling oil prices are typically good news for airlines as fuel accounts for more than a third of their operating costs, but not all carriers are benefiting due to fuel hedging.

 

Delta buys a refinery in bid to cut its fuel bill

Delta Air Lines said on Monday that it will buy a refinery near Philadelphia in the hope of slicing $300 million a year from its jet fuel bill.

 

Oil tumbles on economic worries

Oil prices fell 3.2% Monday, to below $70 a barrel, as further signs of weak fuel demand raised expectations that prices may have raced ahead of the nascent economic recovery.

 

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