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At American, one of the strongest U.S. carriers, fuel now represents 30 percent of the airline's operating costs. A one-cent increase in the cost of jet fuel adds a staggering $25 million per year in operating costs. "Back in July, jet fuel cost us an average of 62 cents per gallon in the...

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Bibliographic Details
Published inNewsday
Main Author Peter S. Greenberg. (c) 1990, Los Angeles Times
Format Newspaper Article
LanguageEnglish
Published Long Island, N.Y Newsday LLC 28.10.1990
EditionCombined editions
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Summary:At American, one of the strongest U.S. carriers, fuel now represents 30 percent of the airline's operating costs. A one-cent increase in the cost of jet fuel adds a staggering $25 million per year in operating costs. "Back in July, jet fuel cost us an average of 62 cents per gallon in the United States," says Jeffrey Kreindler, a Pan Am spokesman. "Today it stands at $1.24. And that's just in the United States. Overseas, it's nearly tripled." Already, the airline has announced a layoff of 2,500 employees. Ironically, the best travel bargain remains the United States. During the first half of this year, foreign tourists spent 17 percent more in the United States than last year. Perhaps more important, the United States Travel and Tourism Administration recorded a $2.1-billion surplus in international travel spending.