With Oil Prices Low, JETS Potentially Has the Wind at its Back

Benzinga staff writer Todd Shriber writes that airlines have benefited lately from low jet fuel prices, the industry’s largest cost category. Before oil prices began to fall to $45 per barrel and lower, fuel represented a third of airlines’ revenues.

Delta Air Lines, Shriber writes, stands to save 50 percent on fuel costs this year partially because it operates its own oil refinery.

Over the past five years, air fares have risen and passenger load factors, a measure of airline capacity, have improved.

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Load factor is the ratio of revenue passenger miles and available seat miles for an airline.