U.S. airlines say higher jet fuel prices are costing them billions more than they anticipated at the beginning of the year.
United Airlines on Wednesday said it expects to spend an additional $6 billion on jet fuel, the second-highest cost for airlines after labor, this year, based on Tuesday's crude oil prices.
The airline said in its second-quarter earnings release that it had already spent an extra $2.3 billion on fuel in the second quarter, or 84% more compared to the same period a year earlier. Higher air fares for customers have helped airlines, including United, offset some of the uptick in fuel prices, as consumer demand for air travel remains robust.
Delta Air Lines last week also said as it reported its second-quarter earnings that demand remains strong even as the carrier raised fares to offset higher fuel costs. As such, it"Airfares are a function of supply and demand. The demand set is really strong and the supply is in balance," Delta CEO Ed Bastian told CNBC.
In the same interview, Bastian noted that Delta customers tend to be on the upper end of theLike United, Delta's own jet fuel costs spiked, too. The airline spent $4.4 billion on fuel in the second quarter, up 77% from the same period one year earlier. The price of jet fuel hit a record high of nearly $5 in April amid an ongoing war between the U.S. and Iran, the Argus U.S. Jet Fuel Index.
On Tuesday, the price stood at $3.64 a gallon, according to the index. In addition to raising airfares, airlines have responded to high fuel costs by temporarily cutting inefficient routes, tacking on jet fuel surcharges to ticket prices, or in some cases,
Please follow us on Google to support usUnited Airlines Oil And Gas Delta Air Lines
United States Latest News, United States Headlines
Similar News: You can also read news stories similar to this one that we have collected from other news sources.
United Airlines launches new Economy Plus row with no middle seatTechnically, the seat will still be there -- but instead of a passenger sitting in it, the seat will have a custom table set up.
Read more »
Goodbye middle seat: United Airlines announces new seating optionUnited Airlines is introducing a new Economy Plus seating option that replaces the traditional middle seat with an open space and shared table.
Read more »
United Airlines cramped middle seat is getting a major makeover that flyers might actually loveThe move sparked online debate, with some questioning if the redesign is truly for comfort or just a cost-cutting measure.
Read more »
An empty middle seat is the latest perk United Airlines will offer on some flightsUnited Airlines is trying to attract flyers with another luxury: an empty middle seat. The Chicago-based carrier plans to roll out new “Economy Plus” seats with no neighbor in the middle spot — and instead use the space for a shared table between the aisle and window travelers.
Read more »