First off, not all airlines hedge their fuel costs. And those that did are only partially hedged for 2011 (even SWA), as with the economy in the tank they figured that oil would remain low until a noticeable recovery.
Second, labor use to be the largest cost to the airline and now fuel is
well over 50% of their costs. So, every time oil goes up it is NOT an excuse to raise ticket prices.
"For United, the world's largest airline since it merged with Continental Airlines, a $1 increase in the price of a barrel of oil means spending an extra $100 million a year on jet fuel, Marren said. United Continental Holdings — parent company of the merged Continental and United — has hedged about 40 percent of its planned 2011 fuel consumption. Even with the hedging, however, U.S. airlines will spend $15 billion more on jet fuel than the $38.8 billion they paid last year if that fuel continues to cost more than $3 a gallon, according to the Air Transport Association."
Finally, my god people.... airline prices are CHEAPER than they were in the mid 80s. My Mom had put my very first airline ticket where I traveled alone (summer camp) in a scrapbook. STL-ORD-DLH. TWA connecting to Republic Ailrines - $423.15 round trip in 1981. What would that be corrected for inflation???? According to
this inflation calculator.... $1,119.03. So quit your whining!
Service sucks? No free snacks? The internet and consumers have turned the airline business into Walmart. You now shop ticket prices like they are a commodity. Cheapest fare wins, even if it's by a $2 difference. Bad service, rude employees, extra charges for everything? Cheapest fare wins! You guys did this to yourselves.
We know you don't have a choice when flying from XXX so we thank you for choosing We Apologize Airlines. On behalf of this Crappy City based flight crew, we hope you have a pleasant afternoon even when you mutter I'm never flying We Apologize Airlines ever again as you walk past the cockpit. Because we know you will be back.