Can Fare Increases & Capacity Decreases Continue to Offset Rising Fuel Prices? Investors Say No.
Jet fuel is the single biggest expense for most airlines. As of last week it had risen 12 percent over the past year, according to the U.S. Energy Information Administration. Oil prices rose further on Tuesday, up $2.65 to $106.25 per barrel in New York. That’s its highest price since May 4.