Airlines Grapple with Fuel Price Surge
The spike in global oil prices brought about in no small measure by the unrest in the Middle East has driven the price of jet-A above $3 a gallon, promptin
Australia’s Qantas increased its fuel surcharge for destinations in the UK and Europe from $95 to $145. [Photo: Airbus]
Australia’s Qantas increased its fuel surcharge for destinations in the UK and Europe from $95 to $145. [Photo: Airbus]

The spike in global oil prices brought about in no small measure by the unrest in the Middle East has driven the price of jet-A above $3 a gallon, prompting airlines throughout the world to adjust their air fares in an effort to compensate. According to the Air Transport Association, $3 jet fuel would raise U.S. airlines’ 2011 fuel bill by some $15 billion. Last year’s fuel bill for U.S. airlines totaled $38.8 billion.

“According to Deutsche Bank, Gulf Coast jet fuel closed just above $3.00 per gallon on February 25,” said ATA spokesperson Victoria Day. “Every $1 increase in a barrel of oil costs the airlines $405 million to $430 million. Fortunately, demand continues to be strong. Airlines continually evaluate how best to respond to such price volatility.”