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.
- 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
Food and Fuel America.com
Good and Balanced Food and Fuel News!