FlyerTalk Forums - View Single Post - Which Routes Will AA Cut Now? (as of late May 2008)
Old May 22, 2008, 9:57 am
  #4  
BStrauss3
 
Join Date: Jul 2006
Location: DFW, SEA and AA in between
Programs: AA-3MM-ExPLT
Posts: 1,146
Do the math...

Elsewhere it was posted that an MD80 burns 935 gal/hr.

Oil at $130 + $30/bbl refining is a effective price of $160/bbl.

Based on other posting, 1 bbl = 40gal of Jet fuel.

So that $130 bbl = $4/gal

My flight DFW-SAN is 3hrs including taxi time.

3*935 = 2805 gallons, divided by 142pax on a full flight is just under 20gallons per pax or $80 in fuel.

If fuel is 30% of their costs as AMR has said, then it costs $267 to fly me.

If occupancy is 85%, it's $310.

Double that and anything less R/T means it's a flight losing money.

-----Burton
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