Every Penny Counts When it Comes to Fuel Costs
Everybody knows that fuel costs have bashed the airline industry...its been beaten into our heads repeatedly. So when the military launches a project to test a new 50/50 blend of synthetic fuel/jet fuel the airlines obviously are going to sit up and watch closely. What shocked me in this article was some of the statistics that the Airline Transport Association have put out regarding the true impact of fuel costs. Here are some fun facts:
-Jet fuel jumped from an average of 75 cents a gallon in 2001 to $2.01 last year, when U.S. airlines spent more than $33 billion on fuel...
-Fuel now accounts for about 30% of the industry's operating costs, compared with about 10% five years ago
-Estimates every penny-a-gallon increase in fuel prices adds $195 million in overhead to the industry. Many airlines are passing along the cost, up to $100 for each passenger in some cases.
Its noted in the linked article that the cost to produce this synthetic blend is high but if prices remain at $60+ per barrel then it may make economic sense. Every airline in the world has there fingers crossed.
-Jet fuel jumped from an average of 75 cents a gallon in 2001 to $2.01 last year, when U.S. airlines spent more than $33 billion on fuel...
-Fuel now accounts for about 30% of the industry's operating costs, compared with about 10% five years ago
-Estimates every penny-a-gallon increase in fuel prices adds $195 million in overhead to the industry. Many airlines are passing along the cost, up to $100 for each passenger in some cases.
Its noted in the linked article that the cost to produce this synthetic blend is high but if prices remain at $60+ per barrel then it may make economic sense. Every airline in the world has there fingers crossed.
posted by The ACK at
09:45
