Business Aviation

Are rising fuel prices a risk to the global air travel recovery?

We believe the answer is, "No." We looked at several spikes in fuel prices over the past 25 years, and while you would expect there is a negative impact of fuel prices on airline profits, this relationship is not consistent since 2001. Since 2001, the increase in fuel prices in 2006-2007 corresponded with record airline profits for the industry.

At approximately 27% of operating expenses, fuel is one of the key factors in airline profitability. While airlines have some success ...

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