Interesting article (from E24 and translated by me) about the current oil price and its impact on US (and global) airlines.
"The airline industry in the US is about to crash. According a recent study several airlines will go bankrupt as a direct consequence of the ever rising oil prices.
If the oil stays around its current $130 several American airlines will not be able to pay its creditors by the end of the year. At current oil levels the total costs for the airlines will rise with 30 billion dollar, only 4 billion are expected to be able to be recovered by higher ticket prices.
"The result will be devastating for American job, families, companies and the entire American lifestyle" - this according the study from Airline Forecasts and Business Travel Coalition.
To cover the costs of operating with oil levels between $130-140 the tickets would have to be raised by 21-24 % and the amount of seats lowered by 18-20 %."
Tough times ahead.
CP