High Fuel Costs Could Derail Summer Travel Season Before It Even Arrives

gaban March 27, 2011
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High Fuel Costs Could Derail Summer Travel Season Before It Even Arrives

2011 is only some months old, and already the tour companies are emotion the consequences of high fuel prices. United Airlines newly reported a $213 million first quarter loss, and low-cost carrier Southwest Airlines reported money of $5 million. Other airlines are estimated to declare first quarter numbers next few days.

The airline commerce continues to be raising fares to compensate for rising fuel costs. However, air carriers have got to be cautious to not push prices too much or risk affecting the number of passengers. United reported that fuel costs rose 35 percent to $2.8 billion. Fuel costs exceed the cost of labor for Southwest at in excess of $1 billion. If another carriers report similar numbers, travelers can expect higher prices to the summer travel season.… Read the rest

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US Airways lost $114M in 1Q on larger gasoline bill

gaban March 22, 2011
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US Airways lost $114M in 1Q on larger gasoline bill

US Airways believed Tuesday that its first-quarter loss more than doubled to $114 million as gas fees rose sharply. The airline will downgrade flying in the 2nd 1/2 the year to chop costs and keep its planes full.

Gasoline costs jumped by $272 million, up almost 39 percent from the year earlier. US Airways is the only real U.S. airline that doesn’t hedge against fuel price spikes. It believed its gasoline bill for the year was heading in the right direction being $1.45 billion more than last year.

The airline could have been raising fares to hide higher gas prices. The demand is there – traffic rose 4 percentage from your same period last year. Those two stuff helped push earnings up 11.7 percent to $2.96 billion.… Read the rest

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