Crude Oil Plunges, Frontier Rallies

Crude oil futures are plunging today as refiners are coming back online after the hurricanes. Prices are now 10% lower than the peak reached on August 30, which was the day after Katrina made landfall. Crude oil is now down to $63.20 a barrel.
Lower fuel costs will bring relief to the airline industry. A barrel of jet fuel now costs $126, twice what it was one year ago. USA Today has more.
The biggest beneficiaries of lower fuel costs will be the smaller players, especially the financially sound airlines. My favorite is Frontier Airlines (FRNT), which is soaring today. Also, the Bureau of Transportation Statistics just reported that Frontier had the second-highest on-time rate, trailing only Hawaiian Airlines.

Posted by on October 4th, 2005 at 12:34 pm


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