A discussion about the airline industry, airline employees, and all things related

Thursday saw oil surging to near $90 a barrel on supply fears and the declining dollar.  Crude jumped to settle at $89.47 a barrel on the New York Mercantile Exchange.  However, the near $90 a barrel is still well below inflation adjusted prices for the 1980’s that would be equal to near $100 a barrel today. 

Prices spiked as the dollar slumped again in the world, making oil cheaper for the rest of the world, since oil is based on the dollar. 

Also instability between Iraq and Turkey borders have played a recent role in the spike in prices. 

"There's almost an inevitability here now that we are going to get to $100 a barrel," said John Kilduff, an energy analyst at Man Financial in New York.

Southwest Airlines (LUV) recently raised prices on some of their Dallas Love Field flights citing higher fuel costs.  Also Singapore Airlines, which just took delivery of their first A380 the other day, said they would raise fuel surcharges for the fourth time this year citing rising fuel costs. 

It will only be a matter of time until the others follow suit. 

CNNMoney.com