As fuel costs continue to soar, airlines are starting to see the full impact of the increases. Today, Southwest Airlines said it may spend $500 million more on fuel this year than it did in 2007. Now, Southwest hedged 70% of its expected fuel consumption in 2008 at an average price of $51 a barrel, but not all airlines are in the same boat, so their additional spending could be much more. Delta has already reported a 28% increase to $1.36 billion for it’s Q3 fuel bill, United saw a jump of 46%, and Northwest Airlines expects its fuel costs to jump $1.7 billion higher than its earlier projections.

The airlines’ fuel woes have obviously affected U.S. passengers, as we’re seeing average fuel surcharges of $50 (for domestic travel), $215 (for European travel), and $280 (for travel to Asia). Of course, we also see the impact of the rising cost of fuel everyday at the gas pump.

Well, things aren’t all that different for the airlines. I thought it would be interesting to see how much the airlines are paying for “gas” by checking out the latest Jet Fuel Spot price and comparing it to prices in the past. The result gives us a clearer picture as to what we’re paying for when we shell out money for those fuel surcharges, and it gives a clue as to where we might be headed…