Soaring fuel costs are devastating airlines industry

Skyrocketing fuel costs have put several airlines out of business, the latest Mesa Air’s Air Midwest, and the worst could be yet to come.

David Castelvetter with the Air Transport Association says the current situation for airlines is as bad as it was following the 9-11 attacks in 2001 and that it could turn out to be worse.


“Post 9-11, we were buying fuel at 25, 30, 35 dollars a barrel for crude (oil), today’s we’re buying it at $120 a barrel. If you throw in the refining costs, now we’re buying at about $150. It’s just an enormous cost,” he says. “We’re on par from an economic perspective to see consequences far greater than 9-11.”

KTAR