Conversely, the Outlook would be revised to Negative if JBLU's FCF or liquidity position weakens, especially in a fuel spike
or falling demand scenario.
Even with the sudden drop in fuel prices, it's still vital to our long-term success to constantly search for ways to improve our fleets' profitability and to ensure we are less affected by another dramatic fuel spike
," said Dale Fink, founder and owner of McKelvey Trucking, which is working with EMTA.
Rising energy prices have some-what stifled consumer spending, yet heaters have stood to benefit from the fuel spike
, as they serve as a lower-cost alternative to full-home heating.
Nonetheless, Fitch views unhedged strategy as risky given the lack of downside protection in a potential fuel spike
, especially when combined with a soft economy which would likely eradicate any pricing power.
This is an encouraging indication of the industry's ability to respond to the fuel spike
, but all carriers will nevertheless face higher 2011 operating expenses and lower margins as a result.
However, the September fuel spike
was detrimental to earnings as
But PSNH has argued that the area's reliance primarily on natural gas could pose problems if the price of that fuel spikes
, as it did last winter.
Although most companies have already adopted the strategy of locating DCs close to transportation hubs and gateways, such fuel spikes
still have a huge impact on transportation and distribution costs.
Major US airlines are cheering the jaw-dropping decline in fuel prices, but at the same time are wincing that some of the insurance they bought to hedge against fuel spikes
seems to have been a waste of money.
Fears over attacks on oil installations and pipelines in Nigeria have helped fuel spikes
As has been widely reported, the ongoing fuel spikes
have had a significant effect on freight transportation operations-especially trucking-from a costs and operations planning perspective.