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OUCH. It hurts. Every time we fill up our tanks. But are the airlines hurting as much as we are? I thought it would be interesting to see what the airlines are actually paying for jet fuel now, compared to what they were paying in 2000. We’re going to stick to domestic costs for the moment (international prices are even higher). Keep reading to see what the airlines are actually shelling out…for jet fuel. |
The Bureau of Transportation Statistics (BTS) tracks total jet fuel consumption and total spending, and then breaks the totals down to the airlines’ cost per gallon.
From the Bureau of Transportation Statistics:
Average Annual Domestic Cost Per Gallon (dollars)
- 2000: .78
- 2001: .76
- 2002: .70
- 2003: .83
- 2004: 1.13
- 2005: 1.63
- 2006: 1.93
- 2007: 2.07
- 2008 (through April): 2.74
Interesting how 2000-2008 correspond to George Bush’s years in the White House!
Comment by Phil Anglade — July 17, 2008 @ 3:11 am
Airlines pay a substantially higher percentage for fuel in 2008 as opposed to 2000 - regardless of consumer fees. Historically low fuel charges have resulted in fairly inexpensive air travel to date - provided you shop around, which I enjoy. Overhead costs are certainly a factor and I would prefer a seasoned, well paid pilot to a more inexperienced, “cheaper” pilot utilized to cut overhead cost.
I can understand why flights are canceled if they’re not full - trimming the fat, we call it. I understand airlines reducing flights to smaller cities with minimal travelers as it is cost effective; however, I don’t know why these carriers simply do not reduce the number of flights as opposed to leaving smaller cities entirely. The city loses the business and the airlines lose loyal customers. A lose/lose situation it would seem.
Nevertheless, flying is preferred to driving due to time restrictions and the cost of gasoline for the general public. Those that can afford it, will continue to fly.
Comment by Amanda — July 17, 2008 @ 9:19 am
Do the math. In 2000, the average driver paid $1.52/gal (can you remember how upset we were when we paid THAT much? lol). I currently pay $4/gal. This is an increase of 267%. The increase for jet fuel from $0.78 to $2.74 is 351%. Unless someone is paying $5.33/gal (and there well may be areas that are that high), gasoline has fared better over the years.
Comment by Mary — July 17, 2008 @ 10:47 am
For a real percentage increase comparison between gasoline and jet fuel, one should remove all taxes from both. Haven’t done the math, but my guess is that gasoline has had a far sharper percentage increase than jet fuel.
Comment by Peter — July 17, 2008 @ 1:01 pm
Interesting how 2004 - 2008 correspond to the years since the Democrats took control congress!
Comment by Mike — July 17, 2008 @ 7:06 pm
True, but individual consumers are not hedging their fuel purchases like the airlines do. This list could be deceiving because Airlines may have locked the prices in 12-18 months earlier.
Comment by Dan — July 17, 2008 @ 8:10 pm
Airlines are doing very little hedging now because the prices are so high. Soutthwest is the only major with a substantial amount of hedges until 2010 when most of them expire and they will be at the same playing level as the others.
Comment by Mike Ferris — August 5, 2008 @ 8:06 am