Airline Info On Fuel Crisis
May 25th, 2011 by admin
Airline info on the effects of the rising oil price paints a dire picture for the industry. Just as major airlines had begun to improve their balance sheets after the financial crisis, they have been hit with skyrocketing fuel prices which the CEO of American Airlines has dubbed another "fuel crisis." Last year was the best year for airlines in a decade, as the carved out a slim 2% profit margin on average.
But since then oil prices have soared over 20%, which has claimed a large chunk of airline operating costs. Violence in the Middle East has stoked fears of shut downs in regional oil production that have not receded. A prime concern is that higher energy prices may derail the economic recovery and decrease airline traffic as Americans pull back their travel budgets.
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