homeWelcome, sign in or click here to subscribe.login
     


 

 

Weekend


print  email to a friend  reprints add to mydjc  

April 27, 2018

CEO says higher air fares coming

DALLAS (AP) — Rising fuel costs are eating into airline profits, dampening expectations for the rest of 2018, and setting the stage for higher fares.

Fuel is the airlines' second-biggest expense after labor, so when it rises — at American it was up 40 cents a gallon from a year ago — so does the cost of providing air travel, says American Airlines CEO Doug Parker.

“If indeed this is where fuel prices are going to stay, I would expect you would see higher fares to consumers over time,” Parker said Thursday on a call with analysts and reporters.

American blamed higher fuel prices for a 45 percent drop in first-quarter profit, to $186 million.

Parker said he doesn't think fares will rise fast enough to have much effect on demand for travel, which has been strong. Passenger revenue per mile, which roughly tracks fares and fees, rose 3 percent over the same period last year.



Previous columns:



Email or user name:
Password:
 
Forgot password? Click here.