A spike in fuel prices, generally airlines’ biggest cost after employee pay, is eating away at carriers’ profits.
“When (the fuel price) increases, the cost of air travel increases,” American Airlines’ CEO Doug Parker said on a call with analysts Thursday. “So I do believe that consumers will pay more.”
The airline said its fuel was about 25 percent more expensive compared with last year, an increase that it said added $412 million to its costs. Competitors Delta Air Lines and United Airlines have also said that they are paying significantly more for fuel this year than last.
Read more at CNBC.