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Even The Airlines Are Ignoring The "Oil Is Good" Narrative
Yesterday we highlighted the 'odd' behavior of the Airlines - cutting jobs to cut costs (but but but low fuel prices?) and seeing traffic and revenue per seat drop (but but but gas 'tax cut' spending?). It appears 2015 has heralded a broad realization that perhaps - just perhaps - the narrative of "low oil is unambiguously good" is not correct...
So good news is bad news? Or are low oil prices symptomatic of another problem and 'efficient stock markets' are finally getting it?
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The Airlines were probably the ones covering their OTM puts in CL today. ( oil spike)
Knowing how airlines operate, they were covering all the "OTM calls" they sold against their stocks.
The airlines and biotech will be the "big shorts" for 2015..... the buy will be gold.
I am waiting for the share price of American Airlines to crater.
Deflation tsunami typically sinks all boats ... and planes.
In the event of a water "landing" your FRNs can be used as a flotation device.
i haven't read anything about airlines getting rich buying options this time
They just charge you $5 for a pillow instead buzz.
Seriously, I'll bet the airlines are heavily hedged at much higher levels (fuel costs) and got caught with their knickers down.
Now they have to cover those positions, if they were hedged against equity. (sold calls) Oil was on a run for 4+ years.
Seriously, I'll bet the airlines are heavily hedged at much higher levels (fuel costs) and got caught with their knickers down...
my thoughts exactly. if they were on the winning side they would be bragging.
Sounds to me like we are right on schedule for the regular barrage of airline BKs
Aren't they typically hedged a couple of years out on fuel costs?
Why wouldn't they just use options only?
Not sure. Thats a good question. Maybe they were heavily/ out of the money hedged on 12-24 month contracts, and they're coming due?
Airlines are like car companies... They all imitate eachother.
That they do. Not a lot of originality.
The more I look at that close, the harder it is to make sense of it. Tyler's right about the algos, but there must have been some stop running, maybe some of it even unintentional for once. Doo Doo happens;)
It doesn't matter where the airline is based. They all use the same banksters. Call it collusion/cartel, or whatever you want to call it.
Karma cannot fuck the airlines industry too deeply in the ass.
This is corporate culture in general. Sure, there are exceptions, but the most common questions I am asked upon walking into a project kickoff meet is, "What is everybody else doing?"
I shit you not.
Where's the Putin shuts off gas to Europe story. Daily Mail reporting it.
It's on like DK... Too bad Putin waited this long to give 'em the high hard one.
Damn straight fella. Bozo has got like his king and three or four pawns. Putin has got bishops, knights and queens coming out of his rectum. Putin needs to be careful not to accidentally do a stale mate from his overloaded side of the board. He won't though, he's a pro. Not like bozo.
Link?
Link: http://www.dailymail.co.uk/news/article-1106382/Europe-plunged-energy-cr...
I distinctly heard the word "check" in Russian echoing across the "pond" this morning.
The banksters need to repay us.
Look at all the market darlings, AAPL, GOOG, TSLA, NFLX... all put in tops months ago.
Without Goobermint subsidies and tax credits, TSLA is a turd.
Haven't airlines generally hedged their future energy prices? Means they are likely still working off those contracts thus the savings is not yet funnelling down. Come summer is when you will see a marked improvement in their fuel costs and profitability.
Are you fuckn' telling me Dear Leader did not part the waters, clean the air, and program the markets to higher highers 4eva?
I'm still going with the "low oil is good." Because it is good for me. The economy was already broken anyway.
You would have to pay me to fly in any one of those crates. Cattle transport.
another sign of "recovery"
2014 theatre gross sales -5.2% year over year
http://www.boxofficemojo.com/yearly/?view2=domestic&view=releasedate&p=.htm
Not only that. Funny thing is - the heavily subsidized VFX industry is crashing and burning down - many companies on the brink of bankruptcy. It's not even working in India. Pixion is going bust. And Pixomondo is not paying anyone anymore - still going to that Award show to get the blinky stuff. More and more of their workers are trying to find a way out before it's too late. Living in their mom's basement and going back to college after having worked 10 years in the industry. Reddit is just full of them.
But meh - I don't like Hollywood anyway. Paying 75 million bucks for an actress that doesn't do shit - all the while it's Bertie and Frank who saved her performance in post. Or that Jerk Andy Serkis who completely dumbfounded everyone at WETA for claiming - it was his performance that made Gollum - meanwhile again - Frankie, Bertie and hundred more toiled 14hr/days to save the fucking performance - only to find out that after the movie is done their no longer needed - breadline for you (with everybody telling them how shitty the CGI was) - and the Oscar goes to Gollum... But hey - for a couple of good years they could believe they were some kind of brain surgeons.
What a lovely world we live in.
Theater gross sales?
I wait for the movie to come to Netflix.
My screen is bigger and my refreshments are better.
Typical reversal of cause and effect. For those awake, the world economy is collapsing at a fairly brisk rate, which naturally reduces demand for oil and gas, which naturally lowers price.
Yet, the self-proclaimed "geniuses" point at the lower prices for oil and gas, and declare them the cause of a boom in the world economy. A boom that blatantly doesn't exist, because they have cause and effect backwards.
Of course they're doing pretty well compared to usual... they're mostly dealing with real phenomenon (the cause and the effect) rather than complete fiction. But... not good enough, mainstream media.
Yeah, fuck the media. In my country they are just all whores. They will fucking print anything just to get in bed with a politician - as a carreer move. Be his personalized PR expert. Being a journalist isn't fun anyway these days. Industry is in a shitty condition. So what you gonna do? There are already magazines out there that don't even need a permanent staff - a deep learning algorithm can already write articles - you only need some freelance hipsters that do some corrections.
What a lovely world we live in...
Because of the way the airlines treat their customers, they will fall earlier, and faster, then most other industries. "Printed" bailout in 3..2..
"Blanket? Sure sir, that will be $5. Charge only. Now a pillow will cost you..."
The banksters need to repay us.
Ive already warned about this so this is not news .
Sounds odd to say "an energy price collapse is bad for transports" but as a Class A OTR truck driver I can tell you right now....this is a disaster for the industry.
Don't even get me started on the perils of debt and taxation...let alone "bad banking.". A trucking company will take inflation over this situation anytime.
Needless to say there are safety issues as well...
Went to the grocery store last night to pick up some salad fixings and there was a nice big sign in front of the Romaine hearts and iceberg lettuce that said" Due to the drought conditions in California all salad prices for iceberg and Romaine lettuce have increased by 20%"...
Wouldn't have a problem with that announcement if the "drought" had been after the price of oil dropped last month but we know the situation out in California has been going on for months!
What a fucking crock of shit this all is!
Fuck the airlines, very much. Whatever happened to the good old days when flying was only for those that "could afford it"? I have not flown for 8 years and have no plans to do any different, until they change the business model and start caring about the customer again. I refuse to pay for a pillow, carry on, etc etc while some morbidly obese nose breather takes up a seat and a half next to me. Planes are nothing but round cattle pots, with more germs than a cattle pot could ever dream of.