Recently air carriers including
American (
AMR) and
US Air (
LCC) announced various surcharges to cover the high cost of fuel eating into their operating margins. While this is not exactly a new story - a total of eight airlines have entered Chapter 11 bankruptcy protection or stopped flying altogether since Dec. 2007 - every time the price of a barrel of oil goes up $1, it drives up the expense of jet fuel by $465 million for US-based carriers.
Meanwhile, carriers are now either partnering up, like
Delta (
DAL) and
Northwest (
NWA), or rumored to be considering it, like
Continental (
CAL) and
United (
UAUA). Expect more fees and surcharges to be coming your way.
Below Minyanville takes a look at what fees you might expect to be paying if fuel costs for air carriers keep rising:
Kevin Depew is the Executive Editor of Minyanville.com. Prior to joining Minyanville, Kevin spent more than five years as an analyst with Dorsey, Wright & Associates where he contributed to and edited the firm's daily research. Kevin welcomes your comments and/or feedback at kdepew@minyanville.com.
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