FuelClub Discount

PetroChina is expected to report that its first-half net profit fell by at least a third, analysts say, as losses in its refining business eroded gains from surging crude oil prices.

Even last year when PetroChina’s market value briefly topped $1 trillion by some calculations trouble was brewing at the traded unit of the country’s leading oil and gas producer.

While other global oil giants are reporting record profits, Chinese government price controls prevent PetroChina and other domestic refiners from passing on higher costs for crude oil to consumers. So their refining operations are bearing heavy losses, despite billions of dollars in subsidies.

(more…)

US Airways said it is canceling the leases on aircraft scheduled for delivery, charging for checked baggage, introducing a new in-flight beverage program and increasing fees associated with employee guest and parent travel programs.
“Our industry is profoundly challenged by the dramatic increase in fuel prices, and we must write a new playbook for running a profitable airline in this new and challenging environment,” Chairman and Chief Executive Doug Parker said in a news release.

The airline said jet fuel costs have nearly doubled in the past year, driving up annual energy expenses by $1.9 billion. The company reported a profit of $427 million last year. But fuel now accounts for 39% of total expenses; it was 14% in 2000.
Roughly 300 pilots, 400 flight attendants, 800 airport employees and 200 staff members will be eliminated from the company’s ranks, US Airways said.
(more…)