Saturday, October 01, 2005

15 round trips has been temporarily canceled by US Airlines due to fuel prices


September 30, 2005



FORT WORTH, Texas (AP) - American Airlines, the No. 1 U.S. air carrier, on Friday said it decided to temporarily cancel 15 daily round-trip temporarily in markets it serves from its two largest hubs, Chicago O'Hare and Dallas-Fort Worth international airports.

Refinery outages caused by Hurricanes Rita and Katrina have made worse an already bad situation for U.S. airlines. In addition to record crude prices, the airlines are paying as much as a 60 percent premium for refined jet fuel.

American's cutbacks were announced a day after Continental Airlines raised most fares on flights within the United States and between the U.S. and Canada, also blaming jet fuel costs. The Houston-based carrier raised one-way fares $10 and round-trip fares $20.

"The skyrocketing price of jet fuel has forced American Airlines to take the regretful step," according to a statement issued by the Fort Worth-based airline, a unit of AMR Corp.

American also said it would discontinue flights between Chicago O'Hare and Nagoya, Japan at the end of October because of fuel prices.

Jet fuel costs have risen 39 percent in the past month. That alone prompted the decision, said Dan Garton, American executive vice president. American said jet fuel cost 91 percent more Thursday than in September 2004, while crude oil prices had increased just half of that amount, 45 percent, in the same period.

American said it cut back markets that would have plenty of other American flights operating.

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