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The Airline Crisis, By the Numbers
June 19, 2008 11:45 AM
One day it's United Airlines announcing cutbacks, another day it's Delta. Rising fuel costs are causing havoc throughout the airline industry: grounded planes, rising ticket fees, new surcharges on baggage, staff pink slips.
Here's a look at how it all adds up:
Jet Fuel Price, Per Barrel, Mid-June 2007: $80.84
Jet Fuel Price, Per Barrel, Year-to-Date 2008: $136.15
Percent Increase in Jet Fuel Price from June 2007 to June 15, 2008: +68%
Total Fuel Bill for Major Carriers in 2007: $41.2 Billion
Total Fuel Bill for Major Carriers Anticipated in 2008: $61.2 Billion
Total Number of Domestic Flights in Oct 2007: 912,790
Total Number of Domestic Flights Anticipated in Oct 2008: 863,200
Percent Decrease in Total Number of Flights from October 2007 to October 2008: -5%
Number of Planes Being Pulled from Service in 2008 and 2009 at Six Major U.S. Carriers: At least 360.
At American: 75 - 85
At Northwest: 33
At United: 100
At US Airways: 10
At Continental: 67
At Delta: 75-90
Number of Airline Employees to Lose Their Jobs This Year and Next, Per Corporate Announcements: At least 6,200.
At Continental: 3,000
At US Airways: 1,700
At United: about 1,500
Sources: ATA, Back Aviation Solutions and OAG.
-- Kate Barrett and Matt Hosford
June 19, 2008 | Permalink | User Comments (12)
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Energy policies in this country are just plain stupid. 75% of Americans are all for more oil drilling and exploration. We're sitting on top of one of the worlds largest oil reserves. Alternative fuel is at least 3 decades away, yet congress continues to block drilling it so they can save the trees and bunnies. No wonder we're the laughing stock of Europe.
As a result, we're at the mercy of the Iran and Saudi Arabia, the airline industry is about to collapse, and inflation out of control. We need Congress to stop passing stupid laws.
Posted by: Mike | Jun 19, 2008 2:49:00 PM
THOUGH WITH CUTBACKS STILL THOUSAND OF PEOPLE TAKE THEIR PLANES AND TRAVEL!
Posted by: Maria Eugenia | Jun 19, 2008 2:58:59 PM
Replace those horid airlines with high speed rail.
Posted by: Joe Rocker | Jun 19, 2008 6:34:42 PM
The reason why America is in the energy pickle is becasue Americans refuse to change behavior. Many of us feel we have a right to buy the largest SUV or truck, fill the tank for cheap, pollute the air without any consequences. Well folks, welcome to consequences. This nation should have dealt with this oil/energy issue back in the 1970's when President Carter warned us about oil dependency. Industry would not listen, American consumers would not listen, and the oil tycoons of the middle-east were (and still are) taking us to the cleaners. Americans are just stupid. This country deserves whatever comes. Why? Because we as a nation refuse to think forward, think smart, and think security. Want an example of foward thinking and smart? How about the new FCX Clarity from Honda. Look it up at Honda.com and learn something.
For those of you who feel I should not write this treatise, fine. But I know this, we can't drill this problem away! I hope Americans know at least that much.
Posted by: Steven | Jun 19, 2008 7:19:09 PM
The statement made by Steven is invalid. It's all over the world. It's true that Americans buys big trucks and SUVs. However, It's not just America having energy problems. It's a problem in Europe as well. We definitely need to have alternative energy, but we must have a solution now! If that means US drilling, so be it!
Posted by: Nyla | Jun 19, 2008 8:34:18 PM
In one of the comments, mention was made of "alternative" fuels, and it is true that these solutions are probably 30 years away. Ironically, it was 30 plus years since we got our first taste of oil shortages, and thats where the wasted 30 years went. The oil industry will never side with consumers. Example, I understand that E85 fuels are 85 percent corn based and only 15 percent gas. Oil companies also produce E85, and I don't think E85 is a thin dime cheaper than regular gas. If someone has to explain that one to you, then go get your crayons, and go back to writing on your walls. High speed rail; that is, high speed rail designed and built by Europeans or Asians would directly benefit mobile America far more than any new drilling would. New sources of oil would be followed by a further reduction in refining, thereby keeping prices on the up. Americans (unfortunately) would build a system like other countries, except ours would be fuel guzzlers, over budget, lower quality construction and so on. I'm so proud of my country, and so disillusioned by those that are running it in the ground. Outsourcing is such a waste, but please consider outsourcing a high speed rail system to those that know how to do it. Even if they are from somewhere else. I know someone will disagree with most of this, but rather than say it now, and have to get those feathers out later, why not just wait and see.
Posted by: Roy Savary | Jun 19, 2008 11:43:15 PM
I believe a paradigm shift in airline industry is necessary. I have my faith that American will lead more new exciting innovation to the air travel market as Ford did to auto industry years ago.
Posted by: KT | Jun 20, 2008 12:12:56 AM
While I am sorry to learn that so much is at stake with these airlines, I am also happy that things will start to change more and more. We Americans travel too much and use up lots of gasoline and clog the roadways. Rapid Rail is one answer to help. Conference calls instead of travelling for boring meetings far away is another answer. We have to start adopting a more simple lifestyle - both in and out of the office. Air travel will never go away, but perhaps in time the airlines will not charge us for everything from baggage to a simple CocaCola. This country is falling apart and we are ALL to blame. Let's start thinking differently and do things that are more energy efficient and to also help us spend more time with our loved ones, rather than spending it in traffic jams or security lines at the airport.
Posted by: Mrs. Tiggywinkle | Jun 20, 2008 12:16:33 PM
Maybe oil companies should be required to buy an airline. We all could fly on the ExxonMobile Express or the ConocoPhillips Airlines
Posted by: Dave | Jun 20, 2008 12:44:05 PM
Thanks to BUSH and CHENEY another industry is falling apart just like the auto industry, the housing industry, the stock market, you name it..When these two THUGS are finally in prison where they belong things may change.
Posted by: louiedog | Jun 20, 2008 2:12:13 PM
Oh good god, Louie....Bush and Cheney may be political nightmares, but the energy problem was inevitable no matter who is in office. The wheel of misfortune landed on them. Sheesh. BTW, I agree wholeheartedly with anyone who understands what spoiled rotten energy hogs we are. For many years I have had a measure of contempt for owners of large SUV's and oversize trucks. If you don't operate a farm, ranch or tradeskill company, or have 4 or more kids, such vehicles are unnecessary. We just don't care. We operate under a sense of entitlement. The bubble has finally burst.
Posted by: Chris | Jul 3, 2008 11:24:58 AM
way ahead of you america. im building a 672 sq ft home that is thermally therminally, therminal.frame home encased in block with r-38 attic insulation.may brick the inside walls eventually..
Posted by: bob searcy | Jul 5, 2008 7:24:21 PM
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