Business

Why Cheaper Jet Fuel Won’t Mean Lower Airfares Anytime Soon

Published

11 years ago

January 21, 2015

In this Jan. 15, 2015 photo, a worker prepares to fuel a United Express aircraft after it arrived at Dallas-Fort Worth International Airport, in Grapevine, Texas. Airlines will save billions this year thanks to cheaper jet fuel, but they arent likely to share the bounty with passengers, not while so many flights are already full. (AP Photo/Tony Gutierrez)

DAVID KOENIG, AP Airlines Writer

DALLAS (AP) — Airlines will save billions this year thanks to cheaper jet fuel, but they aren’t likely to share the bounty with passengers — not while so many flights are already full.

Instead, the airlines will use their windfall to pay down debt and reward shareholders.

Airline CEOs worry that oil prices could just as easily go higher. They hope consumers benefiting from cheaper gasoline will splurge on airline tickets. But the biggest reason airfares aren’t falling: Planes are plenty full at current prices.

Fuel is the biggest single expense at most airlines, and spot prices for jet fuel have tumbled by half since mid-September. If prices stay around these levels, U.S. airlines could save $20 billion this year by some estimates.

The road to fuel savings at an airline isn’t always as simple as it is for a driver at a gas station.

Airlines often buy contracts known as hedges to protect themselves against sudden upward swings in fuel prices. However, when the price of oil crashes, those contracts can lose a great deal of value. Analysts say the accounting losses will be more than offset by lower fuel prices.

For example, Delta Air Lines Inc., the nation’s third-biggest airline company, reported Tuesday that it spent $342 million less on fuel in the fourth quarter than it did a year earlier. But it reported a $712 million loss because it had to write down the value of future fuel-hedging contracts by $1.2 billion.

Airlines won’t benefit equally from cheaper fuel because some, like Delta, will suffer losses on their hedging strategy. The biggest winner could be American Airlines Group Inc., which generally does not hedge.

Airline executives also cite the volatility of oil prices — they spiked to records in 2008, collapsed, then surged again until the recent drop — as a reason not to cut fares now.

Delta CEO Richard Anderson said Tuesday that his airline expects to save $2 billion this year on fuel, even with hedging losses. He said Delta will pay down debt and reward shareholders by buying back company shares, which raises the value of the remaining stock. As for passengers, he suggested that they can shop around.

“The marketplace is incredibly competitive, and there are always differences in fares,” Anderson said.

The prospect of cheaper fuel led Moody’s Investors Service to raise its outlook for airlines this week from “stable” to “positive.” Moody’s analysts say that if crude oil is $55 per barrel all year long — it was trading for $48 on Tuesday — fuel costs at seven of the biggest U.S. airlines will fall about $20 billion in 2015 compared with last year. Even with hedging give-backs, they will come out ahead by $15 billion, Moody’s says.

Delta’s results on Tuesday are expected to be followed with strong fourth-quarter reports later this week from United and Southwest, and next week by American Airlines.

Travelers who expect airfares to drop when fuel becomes cheaper assume that airlines calculate ticket prices based on their costs.

That used to be true, says Robert Mann, a former airline executive who now consults to the industry. A decade or more ago, a financially weak airline would cut fares to sell tickets and raise desperately needed cash by filling seats that would otherwise fly empty. Not anymore.

“The industry is full at these prices,” Mann says. “You couldn’t stimulate additional revenue by cutting prices.”

Mergers have left four airline companies controlling more than 80 percent of the U.S. market. And they have been very slow to add new flights. That makes planes more crowded. U.S. airlines are filling more than 85 percent of their seats in some months — close to record levels, according to the government.

“Right now the airlines have a great balance of supply and demand, and they are using it to ratchet up fares,” says Jim Corridore, an airlines analyst for S&P Capital IQ.

By last summer, U.S. airfares had increased 5 percent in a year and 31 percent in five years, according to government figures.

Besides, Corridore says, passengers didn’t offer to pay more when fuel prices were high.

Some analysts worry that airlines will use cheaper fuel to justify adding lots of flights, which could drive down fares. So far that hasn’t happened in the U.S., although for reasons other than cheap fuel there is overcapacity on some international routes.

There is an increasingly popular view within the industry that cheaper oil might even lead to higher airfares. The theory goes that consumers who are saving money on gasoline and heating bills now have extra cash to spend on travel. Moody’s says that is one reason travel demand will grow at least 5 percent this year.

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David Koenig can be reached at http://twitter.com/airlinewriter

Oakland Post

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Activism

Big God Ministry Gives Away Toys in Marin City

Pastor Hall also gave a message of encouragement to the crowd, thanking Jesus for the “best year of their lives.” He asked each of the children what they wanted to be when they grow up.

Published

3 days ago

December 29, 2025

Oakland Post

From top left: Pastor David Hall asking the children what they want to be when they grow up. Worship team Jake Monaghan, Ruby Friedman, and Keri Carpenter. Children lining up to receive their presents. Photos by Godfrey Lee.

By Godfrey Lee

Big God Ministries, pastored by David Hall, gave toys to the children in Marin City on Monday, Dec. 15, on the lawn near the corner of Drake Avenue and Donahue Street.

Pastor Hall also gave a message of encouragement to the crowd, thanking Jesus for the “best year of their lives.” He asked each of the children what they wanted to be when they grew up.

Around 75 parents and children were there to receive the presents, which consisted mainly of Gideon Bibles, Cat in the Hat pillows, Barbie dolls, Tonka trucks, and Lego building sets.

A half dozen volunteers from the Big God Ministry, including Donnie Roary, helped to set up the tables for the toy giveaway. The worship music was sung by Ruby Friedman, Keri Carpenter, and Jake Monaghan, who also played the accordion.

Big God Ministries meets on Sundays at 10 a.m. at the Mill Valley Community Center, 180 Camino Alto, Mill Valley, CA Their phone number is (415) 797-2567.

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Activism

First 5 Alameda County Distributes Over $8 Million in First Wave of Critical Relief Funds for Historically Underpaid Caregivers

“Family, Friend, and Neighbor caregivers are lifelines for so many children and families in Alameda County,” said Kristin Spanos, CEO, First 5 Alameda County. “Yet, they often go unrecognized and undercompensated for their labor and ability to give individualized, culturally connected care. At First 5, we support the conditions that allow families to thrive, and getting this money into the hands of these caregivers and families at a time of heightened financial stress for parents is part of that commitment.”

Published

3 days ago

December 29, 2025

Oakland Post

Costco. Courtesy image.

Family, Friend, and Neighbor Caregivers Can Now Opt Into $4,000 Grants to Help Bolster Economic Stability and Strengthen Early Learning Experiences

By Post Staff

Today, First 5 Alameda County announced the distribution of $4,000 relief grants to more than 2,000 Family, Friend, and Neighbor (FFN) caregivers, totaling over $8 million in the first round of funding. Over the full course of the funding initiative, First 5 Alameda County anticipates supporting over 3,000 FFN caregivers, who collectively care for an estimated 5,200 children across Alameda County. These grants are only a portion of the estimated $190 million being invested into expanding our early childcare system through direct caregiver relief to upcoming facilities, shelter, and long-term sustainability investments for providers fromMeasure C in its first year. This investment builds on the early rollout of Measure C and reflects a comprehensive, system-wide strategy to strengthen Alameda County’s early childhood ecosystem so families can rely on sustainable, accessible care,

These important caregivers provide child care in Alameda County to their relatives, friends, and neighbors. While public benefits continue to decrease for families, and inflation and the cost of living continue to rise, these grants provide direct economic support for FFN caregivers, whose wages have historically been very low or nonexistent, and very few of whom receive benefits. As families continue to face growing financial pressures, especially during the winter and holiday season, these grants will help these caregivers with living expenses such as rent, utilities, supplies, and food.

The funding for these relief grants comes from Measure C, a local voter-approved sales tax in Alameda County that invests in young children, their families, communities, providers, and caregivers. Within the first year of First 5’s 5-Year Plan for Measure C, in addition to the relief grants to informal FFN caregivers, other significant investments will benefit licensed child care providers. These investments include over $40 million in Early Care and Education (ECE) Emergency Grants, which have already flowed to nearly 800 center-based and family child care providers. As part of First 5’s 5-Year Plan, preparations are also underway to distribute facilities grants early next year for child care providers who need to make urgent repairs or improvements, and to launch the Emergency Revolving Fund in Spring 2026 to support licensed child care providers in Alameda County who are at risk of closure.

The FFN Relief Grants recognize and support the essential work that an estimated 3,000 FFN caregivers provide to 5,200 children in Alameda County. There is still an opportunity to receive funds for FFN caregivers who have not yet received them.

In partnership with First 5 Alameda County, Child Care Payment Agencies play a critical role in identifying eligible caregivers and leading coordinated outreach efforts to ensure FFN caregivers are informed of and able to access these relief funds.FFN caregivers are eligible for the grant if they receive a child care payment from an Alameda County Child Care Payment Agency, 4Cs of Alameda County, BANANAS, Hively, and Davis Street, and are currently caring for a child 12 years old or younger in Alameda County. Additionally, FFN caregivers who provided care for a child 12 years or younger at any time since April 1, 2025, but are no longer doing so, are also eligible for the funds. Eligible caregivers are being contacted by their Child Care Payment Agency on a rolling basis, beginning with those who provided care between April and July 2025.

“This money is coming to me at a critical time of heightened economic strain,” said Jill Morton, a caregiver in Oakland, California. “Since I am a non-licensed childcare provider, I didn’t think I was eligible for this financial support. I was relieved that this money can help pay my rent, purchase learning materials for the children as well as enhance childcare, buy groceries and take care of grandchildren.”

Eligible FFN caregivers who provided care at any time between April 1, 2025 and July 31, 2025, who haven’t yet opted into the process, are encouraged to check their mail and email for an eligibility letter. Those who have cared for a child after this period should expect to receive communications from their child care payment agency in the coming months. FFN caregivers with questions may also contact the agency they work with to receive child care payments, or the First 5 Alameda help desk, Monday through Friday, from 9 a.m. to 5:00 p.m. PST, at 510-227-6964. The help desk will be closed 12/25/25 – 1/1/26. Additional grant payments will be made on a rolling basis as opt-ins are received by the four child care payment agencies in Alameda County.

Beginning in the second year of Measure C implementation, FFN caregivers who care for a child from birth to age five and receive an Alameda County subsidized voucher will get an additional $500 per month. This amounts to an annual increase of about $6,000 per child receiving a subsidy. Together with more Measure C funding expected to flow back into the community as part of First 5’s 5-Year Plan, investments will continue to become available in the coming year for addressing the needs of childcare providers in Alameda County.

About First 5 Alameda County

First 5 Alameda County builds the local childhood systems and supports needed to ensure our county’s youngest children are safe, healthy, and ready to succeed in school and life.

Our Mission

In partnership with the community, we support a county-wide continuous prevention and early intervention system that promotes optimal health and development, narrows disparities, and improves the lives of children from birth to age five and their families.

Our Vision

Every child in Alameda County will have optimal health, development, and well-being to reach their greatest potential.

Learn more at www.first5alameda.org.

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Black History

Alfred Cralle: Inventor of the Ice Cream Scoop

Cralle learned carpentry, mechanics, and blacksmithing at a young age. These skills would later become essential in his innovative work. As a young man, he moved to Washington, D.C., where he worked as a porter in hotels and at an ice cream shop. It was there that he first noticed a common problem: scooping ice cream was messy and inefficient. Servers struggled because the ice cream stuck to spoons and ladles, and getting the right shape and portion was difficult. Many needed two hands — one to scoop and one to scrape the ice cream off the spoon.

Published

3 days ago

December 29, 2025

Oakland Post

A rendering of Alfred L. Cralle’s ice cream scoop. Public domain.

By Tamara Shiloh

Alfred L. Cralle, an African American inventor and entrepreneur, forever changed the way the world enjoys ice cream. Born on Sept. 4, 1866, in Kenbridge, Virginia, Cralle grew up during Reconstruction — a time when opportunities for African Americans were still extremely limited. Despite the challenges of the era, he demonstrated curiosity, creativity, and a natural ability to understand how tools and machinery worked.

Cralle believed there had to be a better way.

Using his mechanical training, he began sketching and experimenting with ideas for a tool that could scoop ice cream easily using one hand. After refining his design, he developed what would become a simple yet brilliant invention: the Ice Cream Mold and Disher. On Feb. 2, 1897, Cralle received U.S. Patent No. 576,395 for the device.

His invention — what we now call the ice cream scoop — was groundbreaking. It featured a built-in scraper that automatically released the ice cream with a single squeeze of the handle. Durable, easy to use, and requiring only one hand, the scoop made serving faster and more consistent. His design was so effective that the basic mechanism is still used today in homes, restaurants, and ice cream shops around the world.

Although his invention became widely used, like many African American inventors of his time, he did not receive the compensation or widespread recognition he deserved. Racial barriers prevented him from fully benefiting from his own creation, even as businesses embraced the tool and the popularity of ice cream continued to grow.

After patenting the scoop, Cralle moved to Pittsburgh. There, he worked as a porter for the luxurious Sterling Hotel and later became a successful businessman. He remained active in his community and continued to create opportunities for himself despite the limitations faced by African Americans at the turn of the 20th century.

Tragically, Cralle died in 1920 at age 54, leaving behind a legacy that would only be fully appreciated long after his passing. Today, he is remembered as the brilliant mind behind one of the most widely used and universally loved kitchen tools.