The Real Costs to Airlines with Rising Fuel Prices
Tuesday July 1, 2008
When you hear numbers like $130 or $140 a barrel for crude oil, it's kind of hard to imagine what that translates into for actual fuel prices.
I thought it would be good to find some resources that made it easier to see the real cost to airlines when fuel prices essentially double in a year.
I found a simple chart that shows the cost of fueling a 777 and other aircraft a year ago and today (well, at about $130 a barrel - it's now around $140). The simple chart from Air Canada shows the refuelling costs from mid-2007 and mid-2008. A very quick and informative read!
Many airlines have spoken out about the costs to the bottom line. American Airlines gave some numbers, and a pretty good explanation at how skyrocketing costs are adding fuel to the fire. The Soaring Cost of Fuel, and its Impact - American Airlines Explains...
...And Happy Canada Day to our Canadian readers.
image courtesy of Arlene Fleming
Excellent chart. Everyday we here about the rising cost of oil, but it’s difficult to grasp the meaning of these numbers. This chart effectively pinpoints the dramatic impact this has on airlines.