Prediction Future Oil Market Need Change

<p>My view identifies a lag effect in airline profitability. When gas prices spike airlines cannot immediately raise ticket prices due to advanced bookings and competitive pressures. This results in a temporary profit squeeze. Conversely when prices drop profitability does not rise instantly because many airlines utilize fuel hedging&mdash;a financial strategy where they lock in prices in advance. If an airline hedges at a high price and the market price drops they remain burdened by the higher cost a phenomenon Lok describes as hedging trap risk.</p><p>Operational Efficiency and Fleet Modernization<br/>Operational efficiency according to my opinion is the industry's primary defense mechanism against volatile energy markets. He categorizes efficiency into two distinct streams: technical efficiency and tactical efficiency</p>