Market seems content to price AIR on the basis that the oil price tailwind will persist for current year and maybe some of next year and who knows for the 2017, 2018 and 2019 years ? Market seems to think you can't put a value on those potential oil price tailwinds for future years but what if oil prices around $70 are the new normal ?
Current futures price for oil Dec 2018 at $68, (mid point of AIR's 2019 financial year) are pricing in big tailwinds for the foreseeable future !!
Implications for the potential for SP upside appear to be very good but to be honest its anyone's guess how sticky these lower oil prices will be.
http://www2.barchart.com/charts/futures/CLZ18