Skyrocketing jet fuel prices have the Air Transport Association projecting that U.S. airlines will spend $61 billion in 2008 -- $20 billion higher than last year -- resulting in an industry net loss of $7-$13 billion. With oil prices continually reaching new all-time highs, passenger and cargo airlines must adapt to survive. Many passenger carriers have announced dramatic changes to their schedules beginning in the second half of the year and continuing well into 2009. If service cuts reach levels called for by industry analysts, passengers and shippers will see fewer daily flights to many cities, and an end of scheduled commercial air service to some cities entirely. Given the commercial aviation sector's contribution to the broader economy, the hardship faced by the airlines will have profound implications.
ATA President and CEO Jim May has said that soaring fuel prices are "the worst economic shock since 9/11, and, possibly, one that is worse." See what others are saying.
Below is just a small sampling of news coverage and commentary from around the country on how this issue is affecting the industry as a whole:
- Graphic: Airline schedule changes at 300 airports, USA Today (updated 8/14)
- Airports brace for fewer flights, passengers, New York Times/AP (8/10)
- As the cost of air freight rises, companies seek options, Portland Business Journal (8/8)
- Airlines to cut 60m seats for Christmas, Telegraph (U.K.) (8/7)
- Fuel prices force airlines to make cuts, Ottawa Citizen/Canwest News Service (8/7)
- ACI-NA: Airports Also Feel Pain of High Fuel Prices, Aviation Daily (8/7)
- DHL Says China Revenue Growth Slows, Reuters (8/7)
- Costly fuel brings dozens of airlines to their knees, International Herald Tribune (8/6)
- Drop In Jet Fuel Prices Is A Drop In The Bucket For Airlines, CNNMoney.com/Dow Jones (8/5)
- Tackling Sky High Jet Fuel, RedOrbit.com (8/5)
- Air Cargo: IATA Alarmed as Frieght Volumes Contract, Logistics Management (8/5)
- Air Frieght Falls in June, Air Cargo World (8/4)
- Will fares go so high that only the rich can fly? USA Today (8/4)
- High Fuel Costs Delay Airplane Orders, New York Times (8/1)
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