According to CNN, American Airlines CEO Gerard Arpey is more than just a little nervous about rising fuel prices and the overall effect they will have on the airline industry. Using some of the strongest language yet regarding the wild volatility of oil prices and the seriousness of rising costs, the CEO warned that even though airlines have begun to make profits again, substantial hardship may still lie ahead.
“We’re facing another fuel crisis, and crisis is not too strong of a word,” said American Airlines CEO Gerard Arpey, speaking at a conference of business journalists in Dallas…
Arpey said he’s also concerned that higher energy prices will stall the economic recovery and decrease traffic as Americans pull back on overall spending, including travel budgets.
“We’re all very worried about what’s happening in the oil market,” Arpey said. “If the economic recovery dampens, it won’t be good for traffic.”
With fuel prices rising and airlines just starting to make profits again, it’s no surprise that airlines are worried but as the rhetoric gets stronger, it seems that fare increases and razor-thin margins will continue to dominate the headlines in the industry through the summer months.