Tuesday, June 17, 2008

Rising oil prices and air travel

With oil price rise showing no signs of letting up, and fuel accounting for over 40% of a carrier's costs, airlines have been responding by optimizing and minimizing their fuel consumption. In a few cases, this has involved cutting down on non-stop long haul flights.

The long hauls are going because they burn fuel simply to carry enough fuel to make the long runs. Short haul flights too are facing pressure, since the 37- and 50-seat regional jets bleed more fuel.

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