Dallas News: Air fares could double if oil prices keep rising - by Terry Maxon
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Air fares could double if oil prices keep rising - by Terry Maxon
Airlines may have to double fares this year if crude oil prices rise above $150, industry analyst Michael Boyd warned Friday. Ticket prices will need to jump 80 percent to 100 percent to cover the airlines' jet fuel if oil prices go that high, he said. His report was issued on the same day the Business Travel Coalition projected that nine of the 10 largest U.S. carriers are likely to report pretax losses of $18.3 billion in 2008 and 2009 combined. The study projected that Southwest Airlines Co. would be the only profitable airline, with pretax income of $708 million.
Labels: Airline Industry, Oil Prices
