Analyst: Air fares could double if oil prices keep rising

Airlines may have to double fares this year if crude oil prices rise above $150, industry analyst Michael Boyd warned Friday. Ticket prices will need to jump 80 percent to 100 percent to cover the airlines’ jet fuel if oil prices go that high, he said.

“As of June 2008, the entire U.S. air transportation system is operating on borrowed time. Between January and today, the situation has degenerated from a crisis to a survival situation,” the president of the Boyd Group said in a report.
“With fuel prices exceeding $3.50 a gallon, the current operation of the industry is totally obsolete,” he said. “Worse, most of the nearly fully booked flights in July and August will be carrying passengers that paid fares well below the new fuel-driven break-even point.”

Dallas Morning News