Airlines worldwide set to lose $3 billion this year

The world's airlines are expected to lose a combined $3 billion this year as the soaring cost of fuel continues to eat away at their profits. The global airline industry's fuel bill this year will top $112 billion - about $21 billion more than in 2005, according to IATA. The International Air Transport Association represents 261 airlines from 136 countries, handling 94% of the world's scheduled air traffic.

David Bonderman, chairman of low-cost Ryanair, said the industry is reaching its peak cycle. "Today is as good at it gets for the airline industry," he said. He noted that Boeing and Airbus won orders for 2,140 jets in 2005 - an industry record. Given the rising cost of fuel, he said, "In two years' time, everyone will be canceling those airplanes." Giovanni Bisignani, director general of the IATA said at the association's two-day annual meeting, "Sometimes we have been our own worst enemy - chasing growth instead of profits. Record aircraft orders could be our Achilles' heel if we stop managing capacity carefully."

Airlines lost $3.2 billion in 2005. Airlines have reduced their overall non-fuel costs by 13% since 2001. The break-even fuel price has moved from $14 per barrel in 2001 to $50. The price of oil is now about $70 a barrel. "Prices are racing ahead of efficiency gains and robbing our profitability," Bisignani said.

Stocks fall yet again

news.yahoo.com :

U.S. stocks plummeted on Monday, driving the Dow industrial average to its lowest close in three months, as investors worried that Federal Reserve Chairman Ben Bernanke's tough talk on inflation meant the Fed wasn't done raising interest rates. Monday's sell-off also pushed the Nasdaq down more than 2 percent in its biggest one-day percentage decline since January 20, putting the index back into the "loss" column for the year. The market's breadth was overwhelmingly negative, with almost four stocks falling for every one that rose on both the NYSE and the Nasdaq.

The Dow Jones industrial average tumbled 199.15 points, or 1.77 percent, to end at 11,048.72. The Standard & Poor's 500 Index slid 22.93 points, or 1.78 percent, to finish at 1,265.29. The Nasdaq Composite Index dropped 49.79 points, or 2.24 percent, to close at 2,169.62. The Nasdaq broke below the 2,200 technical level, which analysts said could take the index even lower. Shares of Apple Computer Inc. were the second-worst drag on the Nasdaq. Apple fell 2.7 percent, or $1.66. to $60.

Stocks sharply extended losses after Bernanke, speaking to a group of bankers in Washington, said Fed policy makers will to be vigilant to make sure inflation stays under control even as the economy starts to show a slower pace of growth.

- Meanwhile, the portfolio is hovering at a 38% total gain, down from where it was at 60% before all this stock market mayhem which started on around 16 May. But it's up from a low point of "only" 26% gain at the local minimum (so far). Not too shabby by ordinary standards, but as you might know, I aim for 100%. Or better.

Because, anything less than a massive victory over inflation means that I am forced to continue fighting an ongoing and losing battle.

Metals thieves hit Malaysian utilities

thestar.com.my :

As prices for metal soar, utility companies have been hit hard with thieves stealing the material worth over RM74mil in the past four years. At the top of the list of those affected is TM Bhd, with losses amounting to RM10.6mil last year, followed by Indah Water Konsortium (RM6.3mil) and Tenaga Nasional Bhd (RM5mil).

A TM source said thieves did not just steal copper cables. "They have even carted away entire metal telephone poles," the source said. Most thefts took place in remote areas, including in jungles and estates. IWK communications head Amin Lin Abdullah said theft of equipment meant more than merely the cost of replacing the stolen items. "They have caused major disruption to sewage treatment processes in our plants," he said, adding that repairs could take up to a month depending on the extent of damage.

TNB media relations head Sidek Kamiso said utility companies were often targeted because scrap metal dealers readily accepted those items and pay good money for them. "Copper can be sold for as much as RM14 per kg and aluminium at RM7 per kg. Thieves have been known to cart off about 15kg of metal at a time but in some cases, transformers weighing several tonnes have also gone missing," he said. He added that a RM2mil transformer could be sold to a scrap yard for about RM250,000.

With the thefts becoming more rampant each year, utility companies have had to come up with various measures to safeguard their equipment, such as round-the-clock-surveillance, replacing wire fences around TNB sub-stations with concrete walls, and welding metal covers to their bases. Amin said new manhole covers were now fastened to the ground with locks while concrete walls had been built to replace barbed wire fencing around properties.

6/6/06

Happy 6/6/06, number of the beast and all that. Google's got plenty of news on this, and some pregnant women are fretting about it. On the other hand, there will be, roughly, 1 out of every 365 people who will be having their birthdays on this day.

(2006-06-06 00:20:24 SGT) [Musings] Permalink

« Previous day (Jun 5, 2006) | Main | Next day (Jun 7, 2006) »

Most popular blog postings on lowem.log :

1. Singapore SIBOR interest rates fall to 1.5%, lowest since Dec 2004
2. Singapore SIBOR rate falls to 1.31%, lowest since Nov 2004
3. Live spot gold price quotes chart on COMEX
4. Fuel prices seen stoking Malaysia inflation in 2008
5. 2010 Honda Civic Hybrid preliminary specifications released
6. Singapore SIBOR rate fell to 1.25% in Apr 2008, lowest since Aug 2004
7. Malaysia inflation rate jumps to 7.7% in Jun 2008, a 26-year record high
8. Singapore : electricity tariffs to increase April 2008 on rising oil prices

Featured articles on lowem.log :

1. ABC Guide to Beating Inflation in Singapore and Elsewhere
2. Singapore inflation rate hits new 26-year high of 7.5% in Apr 2008
3. Singapore : Bread price inflation continues
4. 2010 Honda Civic Hybrid preliminary specifications released
5. Peakoiler buys 2008 Honda Civic Hybrid FD3
6. How to insert currency exchange rates into Google Spreadsheets
7. Singapore SIBOR rate falls to 0.94% in Nov 2008, lowest since Jul 2004
8. Singapore : Inflation erodes away bank savings