Question-and-Answer Session
Operator
(Operator instructions) Our first question comes from the line of Tom Wadewitz with JP Morgan.
Tom Wadewitz – JP Morgan
Good afternoon.
Judy McReynolds
Hi, Tom.
Bob Davidson
Good morning, Tom.
Tom Wadewitz – JP Morgan
Morning for you, I guess, right? Let's see. I wanted to ask you a little bit more on fuel. I don't know if I missed this at the beginning of the call, but did you – you mentioned higher fuel prices as a headwind, do you have any way of framing what you think the net impact was in terms of increase in surcharge revenue versus increase in expense? I guess it's something in the first quarter it sounded like you thought you we're pretty well protected on that by your surcharge, I'm wondering why? What would have happened in the second quarter?
Bob Davidson
I don't think there's any difference there, Tom. I think we're just acknowledging that the costs are going up and not just in the supplies and expenses line where you find diesel fuel and oil. We're seeing it just like every other company in the world I guess. We're seeing those costs filter their way throughout the rest of the income statement. All in, we think we're covering those costs, although as we have talked about over a number of quarters, some of those comparisons get murky. We think we're covering all the costs, but also we think that their impacting our customers, there is some industrywide elasticity involved and we think that it probably affects us in other yield areas as well.
Tom Wadewitz – JP Morgan
Okay, so there's not – it's not like you're coming up on some issues with caps on some of your surcharges or other ways that fuels becoming more of a headwind for you? It’s not really a change in terms of your positioning versus where you've been. It's just I guess maybe – it creeps in, in certain areas I suppose. I'm trying to get a sense of whether there's a change or not, it sounds like there isn't.
Bob Davidson
The line was up 34% and when something is up that much, it's just something that jumps out at you and we felt like we should talk about. We have some fuel surcharge caps where probably we have fewer than those of other carriers and we're addressing those on a case by case basis.
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