Not to get off track...

In the words of a certain former airline CEO: "airlines didn't make money with oil at $30 or at $70, and it won't make money at $120."

The industry needs to fix some underlying problems: descent air service for a price that allows them to earn a profit. Until then, none of this talk about oil will matter much. If airlines had to adjust fares and capacity for oil at $300 a barrel, fares would still be below the inflation adjusted prices in 1978 when airlines first became deregulated.