CHICAGO, IL. (WZMQ) – Trying to find budget airfares could become much more difficult. Several airlines say they expect to cut additional flights due to the higher-than-usual cost of fuel. And travel analysts say those cheaper tickets will be harder to find. Commuters across the country have been paying more to fill up their vehicles over the past few months.
“By the end of the weekend, we could be up to $6.60 a gallon,” said Patrick de Haan, Head of Petroleum Analysis for GasBuddy
So have farmers…..
“It used to cost $100 in diesel fuel, and now it costs $200 in diesel fuel. It hurts,” said farmer Jon Turner.
And…..Likewise for airlines.
“If my forward booking curve —sales that I have from December to January to October, November are strong and they are….If you ask me if I have any concern, it’s jet fuel,” said Antonoaldo Neves, Group Chief Executive Officer, Etihad Airways
Executives from United, American and Southwest Airlines say they plan on getting rid of cheaper —- and less profitable —- flights over the next few months.
During an investors conference this week, Southwest CFO Tom Doxey said: “If fuel is higher-for-longer, I think that’s a natural response… that you trim some of that capacity off.”
“At this jet fuel level that we have today, if that takes too long, we may see prices going up and that may impact customers’ willingness to fly,” explained Neves.
Airfares in June, July and August were roughly 25 percent higher compared to the year before, according to the consumer price index.
“We’re not quite at the inflation-adjusted high from 2008, but any way you slice it, six-dollar and in some cases almost seven-dollar diesel is having a tremendous impact,” said DeHaan.
Discount carrier Spirit Airlines stopped its operations in May after the initial fuel surge.
Another budget carrier, Frontier Airlines, is attempting to move toward premium offerings.
