Essay - The Impact of High Fuel Costs on the Aviation Industry...

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The impact of high fuel costs on the aviation industry

Rising Fuel Prices: a global problem on ***** ground and in the air.


The rising costs of fuel today has become a global crisis for both industries and households. Being heavily dependent upon fuel ***** its continuing operations, airlines have been heavily burdened by such fuel prices. Indeed, some have gone to extreme measures ***** as laying ***** thousands of workers and de***** or eliminating long-distance flights. In addition, the general aviation industry has also suffered, along with the service providers associated with it. Recreational flyers have reported spending much less time in the air, for example. Solutions suggested ***** this regard revolve around alternative lead-free fuel. This has however not ***** conclusively investigated. Not being a simple issue, it is ***** *****ly contested one that could lead to further market instability.


The ***** costs of fuel has ***** the main conversation point ***** mo*****rists throughout the world. For perhaps the first time in world history, the food and fuel crises have become worldwide phenomena, with only an *****vestment in alternative ***** sources appearing to be a valid long-term response. The aviation ***** is no exception, and indeed appears to ***** ***** of the hardest hit industries in terms of fuel. Both commercial and private *****l*****es need a l*****rge amount ***** fuel in order to complete their long- and short-distance *****. The rising fuel costs ***** resulted in a number of strategies to mitigate the extra *****vestment required. Some commercial airlines have even reduced their ********** flights in order to save *****, while others ***** increased their ticket costs. ***** reality is that fuel prices are likely to continue their upward trend as the world's oil resources are increasingly pressured.

Commercial Aviation

The American commercial airline industry ***** facing an ***** crisis in terms of ***** ***** prices. Many face bankruptcy by as soon as the end of 2008, according ***** some authors. Indeed, the stock ***** trend for the aviation industry appears to substantiate such dark predictions: Northwest sh*****s falling ***** 3.3% and ***** Amex Airline Index down by 1.5% (Peer, 2008).

Alexandra Marks (2008) paints an even gloomier picture, noting that the entire aviation system in ***** United states could face collapse by the beginning ***** 2009. Indeed, as indicated above, ***** consumer experience in flight has suffered so greatly that potential passengers are often opting for another method of travel if they possibly can, in order ***** avoid the perceived *****convenience ***** high costs and o*****r cost-cutting methods by *****s. Concomitantly, the airline ***** has become a losing investment. According to the *****uthor, the main effect of the rising ***** ***** fuel costs have resulted in major airlines losing millions of dollars during each quarter. This trend will not continue for very long until every ***** airline faces bankruptcy, ***** ***** warnings ***** the chairman ***** American Airlines, Robert Crandall.

And indeed, the crisis is very real. It ***** expect that, ***** ***** oil *****


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