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 ***** burdened by such fuel prices. Indeed, some have gone to extreme measures such as laying ***** thousands of workers and de***** or eliminating long-distance flights. In addition, ***** general aviation ***** has also suffered, along with the service provi*****rs associated with it. Recreational flyers have reported spending much less time in ***** air, for example. Solutions suggested in this regard revolve around alternative lead-free fuel. This has however not been conclusively investigated. Not being a simple issue, it is a ********** contested one that could lead to further market instability.


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

Commercial Aviation

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

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

***** *****, the crisis is very real. It ***** expect that, if high oil *****


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