American Airlines Forced to Temporarily Cancel 15 Roundtrips Due to Spiking Jet Fuel Prices
FORT WORTH, Texas, Sept. 30 /PRNewswire-FirstCall/ -- The skyrocketing price of jet fuel has forced American Airlines to take the regretful step of temporarily canceling 15 roundtrips in markets the airline serves from its two largest hub airports, Chicago O'Hare and DFW International. All of the cancellations will take place beginning Oct. 5 and lasting through Oct. 29. American will monitor jet fuel prices and evaluate the potential to reimplement service after that time.
The reductions will take place in markets where American will retain a number of roundtrips.
"Jet fuel prices have been rising even faster than crude oil prices for the last year, but it was the 39 percent rise in jet fuel costs in the last month alone that pushed us to make this decision," said Dan Garton, Executive Vice President. "We have made incredible progress in lowering our operational costs for over two years now. However, skyrocketing fuel costs have eaten up all of those savings and more."
Jet fuel was 91 percent more expensive yesterday than in September 2004, while crude oil had risen 45 percent in the same period. The cost of a barrel of jet fuel has risen from over $78 at the end of August -- before hurricanes Katrina and Rita disrupted production and refining of crude oil -- to over $109 per barrel.
Garton said, "This is a tough decision that we never wanted to have to make. We know our customers have seen their own gasoline costs rise, and we hope they will understand that it is no longer economically viable for American to maintain the current level of convenient service in those markets given our current fuel cost."
Following are the markets where flight reductions will occur:
DFW Chicago O'Hare
Cancellations Trips Remain Cancellations Trips Remain
Atlanta 1 10
Austin 2 15
Denver 1 10
El Paso 1 7
Newark 1 6
Washington Dulles 1 5
Houston Inter. 1 9 1 3
Kansas City 1 11
Chicago O'Hare 1 18
Toronto 1 3 1 5
Minneapolis/St. Paul 1 8
Tulsa 1 3
In another move driven in large part by the economic impact of soaring fuel costs, American also announced that it will discontinue service between Chicago O'Hare and Nagoya, Japan, at the end of October.
Current AMR Corp. (NYSE:AMR) news releases can be accessed on the Internet.
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