If fuel prices continue to spiral upward?

Question

Could large corporations like Fedex for example, who use so much fuel for trucks and aircraft, begin to experience financial difficulties in the near future if fuel prices continue to spiral upward?

Answer 1

Big outfits like FedEx and the airlines will be

able to pass the added cost on to customers.

Private aviation and dependant businesses are

the ones likely to take the hit.

Answer 2

abso lutely

Answer 3

If fuel prices continue to spiral upward,absolutely we''ll have to pay higher cost for sending the things..

Answer 4

Yes, without question.

Answer 5

Proportional service charges will go upwards.Generally no

company will survive under losses.

Answer 6

yes. aloha and ata just shut down as well as champion air coming up.

Answer 7

yes, they will. and possibly push the costs unto us, the consumers.

many other companies would also experience financial difficulties as well.

Answer 8

First, they buy their fuel in bulk, so they get a deal.

Second, they adjust their prices to account for extra fuel costs.  For an individual package, it only amounts to a few cents a pound more.

Third, the package delivery business is very lucrative.  This is why Fedex can still operate old gas-guzzling aircraft like the DC-10 or 727 (a 727 burns twice as much fuel as a 20 year old A320 and is about the same size).

People worry about gas prices and availability but it simply spurs financial and technological creativity.  Also governments depend on transportation too and you might see fuel relief for the transportation companies just like there is for farmers now.

Answer 9

You're kidding right?

Answer 10

Yes! Unless business also goes spirally upwards......

Answer 11

There has to be a breaking point.  Alternative fuels will become more and more important.  Within ten years the majority of the cars on U.S. highways will be running on something other than gasoline.  People will get tired of the fluctuating cost of gasoline and will opt for other energy sources in droves.  

.

There is practically no commodity sold that does not get moved by trucks or something burning fuel. As delivery prices go up so do prices. The market will adjust prices and inflation will drive up the price of everything even more.  The service industry in the western world is huge.

Answer 12

Why would you think that the rising price of fuel has not already impacted those companies. They have to cut costs somewhere or raise prices, or both in an effort to maintain a profit. They do this a few ways, raise prices, cut salaries thru lay-offs and/or attrition, cut benefits or reduce services among other things.