Will Peak Oil Turn Flying Into Something Only Rich People Can Afford?

“At $150 dollars a barrel, the air industry is barely viable,” Romm said. “At $200 a barrel, it’s going to revert to the way it used to be, which is something that only rich people do.”

The glory age of the airline industry may be coming to an end. The institutional challenges the aviation industry faces are pervasive and intractable. “At this stage the airlines are just trying to survive quarter by quarter,” said Andrew Goetz. “It’s going be difficult for airlines to remain profitable. Price increases in jet fuel are going to have to be translated into higher fares.”

“It’s not a pretty picture,” he concluded.

CounterCurrents