Like Everyone Else, Airlines Are Feeling Pain At The Pump

By Danielle Contray
October 3, 2012
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Courtesy <a href="http://www.flickr.com/photos/egm757lover/2120465227/" target="_blank"> egmTacahopeful/Flickr</a>

A couple months ago, we theorized that high gas prices would put an end to the summer road trip. But it's not just car owners that are worried about summer travel. What if you had to fill the tank on a 220,000-pound 757? And then fly it over the country?

According to an article in USA Today, Southwest Airlines lost $18 million in the first quarter, while American Airlines' parent company reported a loss of $1.7 billion. Yes, other factors come into play, but rising fuel prices are a significant factor in the losses (even with higher revenue from ticket sales). The company reported that $325 million was spent on fuel in the beginning of 2012, a 17.6% increase over the same time last year.

It's should not come as a surprise, then, that airfare for summer 2012 is expected to keep inching up and up. As Rick Seaney, the CEO of FareCompare.com, advised last month, don't wait to book. Chances are, that flight isn't going to get any cheaper.

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