American Airlines CEO: 'We're facing a fuel crisis'

[marmar]

DALLAS (CNNMoney) -- Just as major airlines have started getting their balance sheets back in order, they're bracing for the impact of skyrocketing oil prices.

"We're facing another fuel crisis, and crisis is not too strong of a word," said American Airlines CEO Gerard Arpey, speaking at a conference of business journalists in Dallas.

Last year, airlines had their best year in a decade, carving out a slim 2% profit margin. But oil prices have soared more than 20% in 2011, and that will increase jet fuel costs, which claim a large chunk of airline operating costs.

As violence in the Middle East and North Africa stokes fears that the political turmoil will spread to other oil producing countries, crude prices continue to climb. And that's adding upward pressure to fuel costs. ............(more)

The complete piece is at: http://money.cnn.com/2011/04/08/news/economy/American_Airlines_fuel_crisis/index.htm?source=cnn_bin&hpt=Sbin

[kenny blankenship]

1. OMG We'll have to bail them out OMG!

They're our transportation system. We can't let them fail!

[LiberalEsto]

2. Hey, we little people are too.

I just had to pay $4.62 a gallon for regular gas in Washington DC.

[Iwasthere]

4. Buy an older mercedes diesel and get a kit to convert it

You can pick up an older diesel for $500 and it costs about $400 now for a kit to convert to run straight veggie, which you can get for free. That is what I did and have been driving free for three years in a nice Ford Excursion. Same mileage same power too.

[BlackHoleSon]

7. Where does

your veggie oil come from and how much does it cost vs. oil per gallon? I have an older turbo diesel van that presently too costly to take anywhere.

[Skink]

3. better get to work on those hydrogen fuel cells.

[glowing]

5. Better believe no one at the top is taking a pay cut before they increase

the price on something else for the passangers.. Did anyone see the headlines where Amtrak is posting record ridership.. seems like this country is more than ready for high-speed rail.. Why did the Dems fool around with awarding "state" money to initiate transportation that is Federally needed? Should have insulated it into a bill on its own and we'd be about 2 yrs into building high-speed rail...

[Logical]

6. This is preparing us for rate hikes I am sure! n-t