Airline fuel prices eat up 73 cents of each dollar
If you have wondered how much rising gas prices are hurting the airlines, the Air Transport Association (ATA) has come up with a number: Fuel costs eat up as much as 73 cents of every airline dollar.
ATA CEO James May said fuel costs amount to $139 of the current US average air fare of $191. That leaves airlines $52 to cover the rest of their costs.
Mr May made his comments before a US Senate committee.
He said the airline industry will lose $10 billion this year and its fuel costs will total $60 billion, up $20 billion from 2007.
Airlines and other businesses are pushing Congress, the Bush administration and presidential candidates John McCain and Barack Obama to do something about rising oil prices, reported the Wichita Business Journal.
“They especially want to curtail commodity market speculators and futures traders, who they say are driving up oil prices. That could include imposing new rules on oil and commodities trading to minimize speculation,†the newspaper said.
None of the presidential candidates have talked much about what to do to fix the ailing airline industry, according to wire services.
Report by David Wilkening
David
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