00:13The conflict in the Middle East and obviously the restraint on the movement of fuel around
00:17the world really has had a severe impact on the price of jet fuel.
00:21So we've seen increases in the beginning, it was about 70% in some of the coastal regions.
00:24That's gone up even higher now.
00:38What is the standard for airlines to hedge their fuel prices is 6 to 12 months and they
00:44hedge as much as 80 to 85% of their fuel.
00:46That means that they're locking in their prices for the next 6 to 12 months.
00:50So there shouldn't be this immediate knock-on effect that the airlines are claiming in terms
00:55of jet fuel.
01:03The big concern I have is that discretionary travel will suddenly become that much more
01:08unaffordable and the demand will drop off quite sharply.
01:12And so we'll see, well obviously less seats, we'll see less demand for seats, we'll see
01:16less actual flying, we'll see airlines beginning to combine flights and the industry's growth
01:23is going to be quite remarkably slowed if not actually reversed.
01:27So we'll see much lower exhaustion.
01:31So we'll see.
01:34You
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