DALLAS — Most of us are feeling a twinge every time we fill our gas tank.
And if you think that's bad, try running an airline.
Jet fuel prices are soaring even faster than oil prices. That's causing airline ticket prices to rapidly notch up.
At the Communities Foundation of Texas, Sarah Nelson has to manage the travel budget for her department. "For our business, it increases the cost of every trip we take, and for our budget we can't take as many trips," she said.
Even booking far ahead, Nelson has seen ticket prices edging up prohibitively.
This week, both American Airlines and United-Continental implemented a $20 fuel surcharge on most domestic routes.
What drivers see at the pump, airlines see by millions of gallons. Even a small passenger jet can burn as much as 10,000 gallons of fuel a day.
At commuter airports, jet fuel can cost as much as premium gasoline, so airlines try to cut long-term deals for fuel called "hedges."
"We feel every penny that fuel prices go up," said Southwest Airlines spokeswoman Marilee McInnis. "Hedges are a type of fuel insurance, and so we are about 51 percent hedged at $105 a barrel."
Southwest has raised its ticket prices $2 to $5 to cope with rising fuel costs. "We believe in raising ticket prices instead of charging a surcharge," McInnis said.
Surcharges are not reflected in ticket prices, but passengers feel rising prices later.
Sarah Nelson has already had to change a flying vacation to a driving one for her family.
"When we finally went online, it was about $1,800 for my entire family," she said.
In this case, what's bad for passengers — and airlines — could ultimately be bad news for a still-struggling economy.
E-mail bharris@wfaa.com
