American Airlines, which stopped hedging fuel in 2014 when oil prices cratered, said in a securities filing this week that its $3.4 billion fuel bill last year made up just 12% of its costs, down from a 22% share in 2019 as the price dropped and its consumption roughly halved. That sent prices sharply lower and airlines' fuel bills down with it. Luckily for carriers, labor costs are currently supported by billions in federal aid, helping soften the blow of more expensive fuel, Syth said.Ĭonsumption of jet fuel plunged over the last year as airlines sharply reduced flying amid a drop in air travel demand. Jet fuel production is one of airlines' biggest expenses along with labor. Greg Anderson, CFO of Allegiant Air parent Allegiant Travel Co., also cited higher fuel costs as a headwind during a Feb. The carrier expects fuel costs to be up 32% this quarter from the last three months of 2020. 11 earnings call cited higher fuel costs as being among the discount airline's first-quarter challenges. Spirit Airlines CFO Scott Haralson during a Feb.
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