Everyone keeps saying the airlines need to raise their prices, but how high can we raise them, and at what price do the passengers finally say "sorry, but it's cheaper to stay home"? This blurb was in CAL's daily newletter to its employees. Pretty soon it won't be feasible to fly the longhaul routes anymore. I hope the oil people are happy with what's happening.....
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The price of jet fuel reached an all new high today of
$139.67 per barrel, and CO’s cost to fly continues to increase.
A flight from Delhi
to EWR burns 35,700 gallons, at $3.14 per gallon, or $112,100 of fuel. With 260
customers on board, that equals almost $430 per passenger for fuel alone before
factoring in the cost of the airplane, maintenance, crew, landing fees,
catering and other related expenses. Fuel is now CO’s biggest fixed
expense, increasing 45 percent from February 2007, to February 2008. Crude
closed at $110.21, down $.12 from Thursday.