Could airlines wing way to profitability in 2006?

…It’s been painful. More than 160,000 employees have lost their jobs during the period. Most other workers have seen their pay and benefits cut, and their work requirements increased. United and the old US Airways defaulted on their pension plans, and Northwest and Delta are candidates to do so this year.

But those sacrifices and savings have been overwhelmed by high fuel prices. In 2001, oil was slightly more than $30 a barrel. However, strong demand and tight capacity for refining and delivery had more than doubled oil prices even before Hurricanes Katrina and Rita struck the Gulf Coast last summer. The price of crude hit $69.91 a barrel on Aug. 30, the day after Katrina struck, according to the ATA.
In the following weeks, the cost of refining it into jet fuel soared to more than $30 a barrel, on top of the crude price. Airlines briefly paid more than $2.10 a gallon for jet fuel in October, vs. about 90 cents in October 2004.

Ironically, consultant Maldutis says, high fuel prices gave carriers an unexpected ability to push through a string of fare price increases last year.

USA Today