High Fuel Costs Say "Aloha"!

American holidays are going to be a bit less festive this year due to the high cost of jet fuel.

Say "Aloha" to less family travel, higher prices, less flights and more passenger air rage.

The recent bankruptcy announcements by ATA and Aloha Airlines are just two recent examples of the toll that higher priced oil is taking on the airline industry. The airline shutdown left thousands of stranded travelers and thousands of employees without jobs.

According to IATA (the International Air Transport Association), jet fuel prices have increased 62% from one year ago.

Forbes magazine made several distinct points recently about this air disaster:

• high jet fuel prices are taking their toll on Aloha Airgroup.
  
  
• The rising price of oil has been taking its toll on legacy airlines as well. United Airlines, owned by UAL Corp , announced Thursday that it would be cutting back the size of its fleet to cut costs. Delta Air Lines reported fleet contraction and job cuts last week as well.
  

• The cost of crude is like a plague on all of the airlines causing operating costs to rise and cuts to be made.

But the damage from America's love affair for foreign oil isn't just limited to leisure family holidays. Businesses will pass along the higher cost of air travel to their customers. And higher transportation costs for food and goods will continue to fuel inflation.

READ MORE

• When Oil Prices Rise, So Does Just About Everything Else
• Labor Dept: Energy Costs Fueling Inflation
• Gas Prices Creep Up Even Higher
• Consumers Face Soaring Gasoline Prices
  

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