Fuel Cost

RECENT NEWS
The Hindu Business Line  Nov 6  Comment 
Higher material and fuel cost has hit the quarterly earnings of Hindalco Industries Ltd. The company has reported 28 per cent decline in the net profits for the second quarter at Rs 358 crore. In...
The Hindu Business Line  Nov 1  Comment 
Lower fuel cost, coupled with the rupee appreciation and higher realisation helped boost JSW Energy’s performance in the second quarter-ended September 30. N. K. Jain, Vice-Chairman, said...
The Hindu Business Line  Jul 20  Comment 
JSW Energy’s first-quarter profit slumped by more than a third as the company’s fuel cost rose and it incurred a loss due to depreciation of the rupee against the dollar. On a standalone...
The Economic Times  Jun 5  Comment 
Singapore's new budget carrier Scoot has taken off for the first time, using a novel way of saving fuel - by replacing its in-built TVs with iPads.
The Hindu Business Line  May 10  Comment 
Public sector power producer National Thermal Power Corporation Ltd on Thursday reported around 6.77 per cent dip in its fourth quarter net profit. NTPC has reported net profit of Rs 2,59...
The Hindu Business Line  Apr 30  Comment 
The Karnataka Electricity Regulatory Commission (KERC) is planning to introduce a mechanism for collection of fuel cost adjustment from consumers. Addressing reporters, the KERC Chairman,...
Reuters  Mar 30  Comment 
Australia's Qantas Airways Ltd said on Friday it was raising domestic and international fares for the second time in as many months to partially offset high jet fuel prices.




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This is calculated by multiplying Fuel Cost per Gallon by Gallons of Fuel Used.

This metric is commonly used in various Transportation industries like Airlines and Trucking. Fuel costs are airlines' largest operating expense, accounting for 25% to 50% of an airline's operating expenses depending on the specific carrier. Because fuel costs are highly volatile, fluctuations in oil prices can significantly affect airlines' financial performance. For example, United's 61% increase in fuel expenses spurred a 29% jump in operating expenses in 2008.

To mitigate against volatile oil prices, many airlines enter into Hedging agreements to set price ceilings for their fuel purchases.

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