ATA: Address Fuel Price Crisis

The Air Transport Association of America (ATA) urged the Senate Committee on Commerce, Science and Transportation to do something about the severe economic consequences of the current fuel price crisis. ATA’s John Meenan urged Congress to craft policies that will help solve the problem, pointing out the severe consequences of inaction. According to ATA, fuel prices now average 30 to 50 percent of airline operating expenses, costing $41.2 billion in 2007, and these costs are projected to grow to $62 billion in 2008. These costs significantly threaten the U.S. airline industry’s growth and ability to invest in fuel efficiency improvements, a sign of dire consequences for the United States. “The nation’s airlines expect to lose in the range of $10 billion this year – a loss on par with the worst year in this industry’s history,” said Meenan. “High fuel prices are the sole reason. This nation’s economy is inextricably linked to the viability of its air transportation system. If the airlines continue to spiral downward, so will the economy,” said Meenan.