The rise of fuel costs could destroy US Airlines
Published: 15/08/08
US carriers are thinking up new ways of cutting costs and new ways of making more profit. Due to the steady increase in fuel costs US airlines are seeing their profit margins taking plunges.
A lot of airlines are turning to mergers in a way to cut costs.
Chief executive of US Airways, Chris Parker said: "Speaking for US Airways, fuel prices are going to be $800m or so higher than what they were in 2007, everyone has that same equation. What we're spending on oil this year, if all else stays equal, is more than enough to push them from a profit to a pretty big loss."
Most US airlines are poised to report their second-straight year of annual profits, buoyed by healthy demand for air travel, and economists and analysts alike had predicted the industry would stave off losses for at least another year.