Tuesday, June 10, 2008

More on the demise of cheap air travel from the WSJ:
You can fly between New York and Los Angeles for as little as $370 round-trip, not including taxes and government fees, on JetBlue, and $20 more on American. And out of that, how much will the airline spend on fuel?

Almost $300 per passenger for JetBlue at current prices, and nearly $500 for American. Just Friday's $10.75 leap in oil prices would raise the cost to JetBlue Airways Corp. to fly someone from New York to Los Angeles and back by almost $24.
There just isn't a rational business model at these oil prices. Expect to things break down sooner than even Daily Sprawl anticipated.