With rising fuel costs, how can airlines continue to offer deals?

Question

Im sure the passenger planes are the SUV equivalent

Answer 1

It depends on how much profit the airline companies make. However some companies have problems please see link.

Answer 2

they can offer deals because they raised the prices on everything to they still come out on top.  hopefully the industry fails here pretty soon, we need a fresh start. airlines dont give a flying flick about customers anymore, its all about the profit. I wont fly on any of the big airlines because it is always a bad experience from start to end. I flew on south west this year and was impressed.  I heard somewhere that fuel prices per flight went up almost 200% over the past year, so expect that to continue and you, the passenger will have to pay for it.

Answer 3

um... okay.. =)

Answer 4

It's much easier for the airlines to make money by squeezing it out of labor than passing the cost on to the consumer.

Answer 5

heck, they don't........Look at the airline merges.....its not because Delta and NWA CEO's are best friends.....JEEZ

Answer 6

Depending on the aircraft and its use the cost of the necessary fuel consists of only a small percentage of the total operating cost. These other costs are aircraft depreciation, maintanence including the storage of spare parts and their control, crew salaries, (various) airport charges, food and drink, etc. Thus an increase in any one item is unlikely to make the airline broke, although they obviously would like for their costs to be reduced. The airline also needs to provide and support a complicated ticketting system and luggage monitoring system etc.

The airlines can still make deals because they already know how many seats they need to occupy for the cost of the filght to be covered by their sales of the tickets for it. When this is achieved the additional seats can be auctioned off to other possible competitiors without loss and the deal that you find may well be one of these.

So the answer that it takes a big change in the fuel price to make a normally operating and profit-making airline broke, and they continue to survive at lower profits.

Answer 7

They can't. And some won't. Then the deals go away. Simple market economics.

Did i read in an answer above that somebody thinks that fuel is but a small percentage of the operating costs of an airline. hahahahahahahahahahahahahahaaaaaa.

Man I love this place.

Answer 8

They can't seems like these CEO's don't know there way around business. Seems like they don't care either, it's going get real bad soon.

Answer 9

Many airlines purchase fuel years in advance. Until their contracts run out the price of their fuel remains the same. When it does run out they renegotiate the contract. When you agree to buy millions of gallons over a 3 to 6 year period the oil companies are willing to give you a substantial break.

Answer 10

There are ways to augment fuel prices, some government subsidize fuel for the airline which is the country's flag carrier.ou wouldn't believe it but budget air ticket price for domestic flights in Malaysia is much cheaper than a bus fare that is if you bought the ticket two months in advance but if you rebook it then you have to pay trice the amount. Some deals are really have a catch. Some flights the fuel uplift is good for one way and when they reach their destination where fuel price is much cheaper the plane uplift fuel is full to the limit passenger (payload allowing).