American Airlines CEO warns that higher fares are coming due to fuel prices
TAMPA (FOX 13) - The world’s largest airline could have an uptick in prices.
American Airlines CEO says consumers will likely pay more in ticket prices due to rising fuel costs eating into airline profits. Doug Parker, the CEO, said in a call with analysts and reporters that if fuel costs go any higher, so will airline fare.
American Airlines says its first-quarter profits were down, due to higher fuel prices, and it’s paying 40 cents a gallon more for fuel now. The airline also cut its forecast of profit for 2018 to between $5 and $6 a share.
FOX Business reports the airline has replaced many of its gas-guzzling older planes with new, more efficient jets over the last several years. Still, fuel spending jumped 26 percent.
Read more at FOXBusiness.com.