As Crude Oil prices continue to trade above the $125 mark, Airlines around the world are struggling with their Aviation Turbine Fuel (Jet Fuel) Bills.
"""" “For every dollar that the price of fuel increases, our costs go up by US$1.6 billion,” said Giovanni Bisignani, IATA Director General and CEO at the Association’s 64th Annual General Meeting and World Air Transport Summit (WATS/AGM) """"""
"""""The International Air Transport Association (IATA) called on governments, industry partners and labour to address the fuel crisis that is pushing airlines into the red. IATA forecasts a loss of US$2.3 billion for 2008 based on an average oil price of US$106.5 per barrel Brent crude."""""""
After the Bear Stearns bailout, Airlines are going to be next, unless oil prices cool off soon.
Meanwhile in India, ATF prices are among the most expensive in the world, as the government subsidises other fuels such as Petrol, Diesel, Kerosene and Cooking Gas (LPG).
As a result, most airlines in India are now resorting to raising the fuel surcharge on tickets