Originally Posted by 777lover
+$75 seems a little high given we are already paying a fuel surcharge.
I am not a wizard with fuel capacity, burn, etc on different aircrafts, but I am sure that someone knows how many gallons of fuel a S80 takes to fly from say ORD-LAX. Then lets pick a base line of last year at X$ per gallon and do an estimate on the incremental cost of fuel now and then divide it by the # of seats times a load factor and see what the back of the envelope calculation is...
Any finance guys out here (I am all marketing and numbers scare me)?
BTW - domestically, what is the fuel surcharge we are paying?
Don't know how high the fuel surcharges are, but not all fares even carry surcharges.
In 2003, AMR burned 3.161 billion gallons of fuel at an average price of $0.877 per gallon for a total fuel bill of $2.772 billion.
Yesterday, Arpey said that for this year, AMR will spend about $5.75 billion on fuel, an increase of about $3 billion. $75 per round trip works out to about 40 million round trips per year, which seems reasonable given AMR's 115 million or so pax boardings (which may very well work out to about 40 million actual round trips). So I assume that Arpey knows what he's talking about when he talks about a $75 increase being necessary to cover the difference between 2003 and 2005 fuel expense.
He says that average fares have increased only about $15 during that time, which leaves a shortfall of about $60 per roundtrip ticket.
http://biz.yahoo.com/ap/051006/ameri..._ceo.html?.v=2
Yesterday, Arpey said that AA is spending about $3/gal for jet fuel this week; at that rate, the money won't last long.