Higher oil prices have been good for business, according to a report by an arilines writer. In the past six years, the report says, airlines have overhauled the way they operate to adjust to this new reality by exercising more discipline with things like offering fewer seats. This, he says, ensures airfares are high enough to cover costs. A decade ago, airlines were paying just US $1.42 a gallon for fuel, when adjusted for inflation. Last year, they paid an average of US $3.03 a gallon. Fuel now accounts for more than a third of airlines’ expenses, overtaking salaries, wages and benefits as the single biggest line item. U.S. carriers burned through 16 billion gallons of jet fuel last year at cost of US $48.4 billion. That’s up nearly US 23 billion from 10 years ago – when the airlines consumed 2 billion more gallons of fuel. Mayorowittz explains that thhis is good because high oil prices forced the major airlines to do business differently. They grounded older, gas-guzzling jets. Then they charged extra for checking baggage and raised other fees. More passengers were packed into planes and mergers helped push airfares higher.
Uncategorized Posted by The Reporter Newspaper on April 16, 2014 at 6:21 pm
Author: The Reporter Newspaper
- Superbond ll: The Price of a Belizean Haircut Belize needs to be more innovative!
- Investor John McAfee says GSU terrorized him
- Belizeans awarded 21 scholarships to study in Taiwan
- BTL second nationalization null and void, judge rules
- Cancer prevention, lifestyle changes, possible treatment
- Central Bank predicts several lean years
- How can Belize reap the best fruits from our agricultural sector?
- BDF wins 2012 Champions’ Cup
- Dark chocolate may lower blood pressure
- Galen University growing stronger than ever
- rene.m: Is it really GOB or the same perera filling his pocket remem…
- syoung: Sorry, I meant the 4th paragraph!…
- syoung: Hello, I would appreciate if you could make 2 corrections to…
- bznbrnbrd: All this is pretty sweet thinking but you forget we live i B…
- stuffmonger: I would like to point out the deeper implications of my dis…
- Very Concerned Citizen: The Drug business is alive and flourishing in Belize.... Sti…