The price of jet fuel is surging, but so far the airline industry has been so competitive that carriers haven’t been able to pass on much of the cost to consumers. That means investors are bracing for lower profit margins as travelers take advantage of cheap flights. An abundance of seats in the domestic market means airlines have limited ability to boost fares, and most companies aren’t willing to trim ahead of the summer travel surge. Southwest Airlines Co. temporarily offered one-way fares as low as $49 last week as it looked to reverse a decline in bookings after a fatal accident last month. “It’s a good summer to be a leisure traveler,” said Samuel Engel, head of the aviation group at consultant ICF.
Source: FuelFix
