To expand on my argument. The price of kerosene increasing will hurt the airlines bottom line, but with hedging and price fluctuations, airlines can absorb the extra costs and survive, but they will need to cut costs in other areas (T&C the next biggest cost on the books).
Wow. More airline management proteges. Gee, that's a really sustainable management practice. "OK Mr Airline CEO, I'll keep on cutting my wages for you while oil keeps going up, so that you can keep selling your tickets for $29. No problems...I'll even pay YOU to work at your airline."
And of course, oil prices only effect the airline industry...not. If oil continues like it was before the GFC, then it won't only be airline managers trying to "cut costs" We'll have plenty more to worry about.
And as Butterfield says, price is partly a function of demand...obviously. Personally, I don't care if oil goes to $1000 a barrel. I won't be the only person scratching my head and wondering where my job went!
It will also bring alternatives into the market, and there are alternatives. The market has a way of sorting these things out...as it did in the previous oil price spikes.