Airline Fuel Costs Mount

The airlines are huge users of fuel. Fuel costs arefuel it has it's own reserves and oil fields and
higher than even the cost of the aircraft. Surchargescontracted out refineries. It has about enough supply
are up to the highest point in the history of thefor the entire country for 60-90 days depending on
airlines along with the fuel costs at an all time recordour conservation levels in a crisis situation. Fighting a
cost. Airline tickets and airlines live and die on theirwar takes a tremendous amount of fuel. The
ability to number one fill up planes and number two,modern Aircraft carriers use nuclear power, like the
manage their fuel costs. Discount Airlines have beensubmarines, but the rest of the world's greatest
able to keep flights full in order to order to coverarsenal uses fuel of various types. And they are
costs and keep prices low, but are hurt in quarterlyalways testing different fuels to increase
earnings every time fuel prices increase.performance in different situations.
When fuel prices stay high, you often see massiveThese reserves have been used when OPEC plays
downward spirals and negative sector rotations inhardball creating fuel prices above our ability to
Airline Stocks. Again it is all about the cost and flowoperate our industries and businesses and keep
of fuel. It is of interest when we hear talk of ourAmerica employed and the wheels of commerce
National Debt and how important that is. "A Nation isturning. Opening up the floodgate of supply, lowers
not in danger of financial disaster merely because itthe prices and puts the cartel in check. If not certain
owes itself money." The flow of fuel is several timesbusinesses become un-viable when fuel prices go too
more important than that, because with proper flowhigh. Think of the military aviation, jets, helicopters,
and economies of scale, every thing works betterUAVs, AWACs, bombers and even flying gas
and every one wins. Consumers have lower pricesstations in the sky for aerial re-fueling. It is like
and more choices; governments have greater taxrunning several airlines non-stop 24/7. Generally
revenues due to more commerce and more jobsAirlines too are a 24-hour business. The airline industry
paying into the system; industry has higher profitsis under extreme pressure now.
and more money to expand; the stock marketIf they keep raising their fees to passengers then
moves upward provided greater benefits for thosethe passenger per plane ratios drop off, meaning
who bet on a strong America and therefore greaterflight are unprofitable. If they do not raise the price
investment in new companies which providethen they lose money. It is a no win situation and
innovation and research and development to improvethey need some fuel price stabilization, yet an already
the flow of every thing we know. Speaking of thehampered industry is facing additional crisis from fuel
benefits of the flow of fuel to government in thecosts. We have seen already four major airlines file
tax revenues, just think of all the fuel thebankruptcy and two out of business, two more are
government uses at all levels? Incredible amounts atfacing bankruptcy and several are considered bad
every level; so incredible that they along with privaterisks from ever emerging from their bankruptcies.
enterprise spend millions of dollars trying to figure outThe flow and costs of fuel are critical to the airline
more efficient methods. The military uses so muchindustry and the future of air travel in the World.