The End Of Aviation

What will happen when America can’t afford to fly?

As the age of cheap oil comes to a close, it’s springtime for gloomy futurists. Visions of a brutish world marked by violent squabbles over dwindling reserves, of junkyards littered with abandoned cars, of suburban slums overrun by weeds, of the collapse of industrial agriculture–none of this sounds as outlandish as it once did. Still, most of these horror stories are likely overstated: Energy experts tend to agree that, with a little ingenuity and a generous helping of political will, we could transition away from fossil fuels without being forced to give up our modern lifestyles.

But there’s one big exception–an area where a post-carbon world really could mean a radical shift in the way we live. That’s the world of commercial flight.


Early signs of an aviation apocalypse are already upon us. As oil prices flirt with $130 per barrel and the dollar struggles, airlines are paying nearly 80 percent more for fuel than they did a year ago. Twenty-five airlines have gone belly-up this year–three to four times the usual yearly rate. Major carriers like American, Northwest, and United, still reeling from the industry downturn after September 11, go barely a month without announcing layoffs and capacity cuts.

And it gets worse from there. Despite recent fluctuations, a growing number of economists are bracing for oil to hit or surpass $200 per barrel in a few years, and most industry analysts agree with Douglas Runte, of RBS Greenwich Capital, who told The Wall Street Journal in June, “Many airline business models cease to work at $135-a-barrel oil prices.” After all, most airlines barely figured out how to be profitable in a world of low fuel costs. Jeff Rubin, chief economist of Canadian investment bank CIBC World Markets, has predicted that gasoline will hit $7 per gallon by 2010, forcing some 10 million cars in the United States off the road. If that happens, he told me, “You’re going to see an even bigger exit in the airline industry.”

The New Republic