Airlines post losses because of fuel prices rise
The 20 largest U.S. airlines posted an operating loss margin of 0.02% in the fourth quarter of 2007, the first loss after six consecutive profitable quarters, according to a monthly report by the U.S. Department of Transportation Monday.
The report measures the operating margin — profit or loss as a percentage of total operating revenue — of 20 large-network, low-cost and regional carriers in the USA. The industry last posted operating losses in the first quarter of 2006.
Sharply rising fuel costs contributed significantly to the loss. The 20 carriers spent 29% of their operating expenses in the fourth quarter of 2007 on fuel, compared to 13.5% five years earlier in the fourth quarter of 2002.
The seven large-network carriers reported an operating loss margin of 1.1% (loss of $274 million), compared with 1.7% profit a year earlier (profit of $392 million).
Source: USAToday
Tags: airlines, crisis, fuel costs, price rising