21 February 2013 20:53 [Source: ICIS news]
HOUSTON (ICIS)--The price of jet fuel reached an all time high in 2012, and prices are on the rise again in 2013, a US airline organisation said on Thursday.
The price of jet fuel in 2012 reached a record-setting, year-long average of $128/bbl, which cost airline carriers approximately $50bn (€37.5bn) for the second consecutive year, industry trade organisation Airlines for America (A4A) said.
“The airlines spent some $50bn to fuel their flights despite using half a billion fewer gallons in 2012 than in 2011, and last week the price of jet fuel hit its highest level in nearly a year. Fuel remains the airlines’ single largest expense,” said A4A vice president and chief economist John Heimlich.
The average spot price of jet fuel has more than tripled since 2000, and has risen by 42% since 2010, A4A said.
Furthermore, it is already nearing the $140/bbl mark in 2013.
“US airlines eked out another year of meager profitability as expenses grew faster than revenues with record-setting fuel prices serving as a primary driver,” said Heimlich.
($1 = €0.75)
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