Here are your top FOX Business Flash headlines for March 9th.
The rising cost of jet fuel is the latest disaster for the aviation industry.
Some carriers are being forced to reduce their flight schedules due to rising fuel prices caused by rising oil prices.
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People check in at Alaska Airlines ticket kiosks at Seattle-Tacoma International Airport ahead of the Thanksgiving holiday in Seattle, Washington, U.S. (Reuters/Lindsey Wasson/Reuters)
Spot aviation fuel prices for the Gulf Coast have doubled in the last 14 months and have risen by one-third just since the beginning of this year. Because fuel can be one-thirdNoAirline expenses, this is a big article.
Alaska Airlines said Tuesday in a regulatory filing that fuel prices were volatile “as a result of the conflict in Europe and Russia’s ongoing invasion of Ukraine.”
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The carrier estimates fuel will cost $2.60 to $2.65 a gallon in the first quarter, beating its earlier forecast of $2.45 to $2.50 a gallon.
As a result of the “surge” the carrier said it had “slightly softened our capacity forecasts for the year”. Alaska expects to reduce the number of flights by 3-5% in the first half of 2022.
Travelers pass through Salt Lake City International Airport on Tuesday, March 9, 2021 in Salt Lake City. (AP Photo/Rick Bowmer/AP Newsroom)
“We continue to plan to return to 100% pre-COVID-19 capacity by summer, with subsequent growth in the second half of the year, and will continue to prudently adjust capacity as needed in response to the changing fuel environment,” the company said. in submission.
| Ticker | Security | past | Change | Change % |
|---|---|---|---|---|
| ALGT | ALLEGIANT TRAVEL COMPANY | 146.94 | +9.89 | +7.22% |
| ALC | ALASKA AIR GROUP INC. | 48.63 | +1.97 | +4.22% |
Budget carrier Allegiant Airlines plans to do something similar, according to Bloomberg.
Chief Financial Officer Greg Anderson said at a conference call on Monday that the company is aiming to cut its capacity from 5% to 10%, according to the publication. However, the carrier will try to do so during periods of lower demand.
Allegiant Airlines did not immediately respond to FOX Business’s request for comment.
The Associated Press contributed to this report.