Airline feels fuel squeeze


The price of jet kerosene has reached an all time high and is significantly affecting the cost of Air Pacific’s operations, says acting chief executive officer, Josephine Yee Joy.

Ms Joy said if fuel prices remained high or continued to increase, the airline would be forced to review scheduled operations.

The fuel price increases have forced the airline to review its passenger fuel surcharge rate.

Ms Joy said the airline was also undertaking cost control measures.

The price of jet kerosene continues to soar and is currently sitting on $US11 ($F17) per barrel.

“Air Pacific has been experiencing significant fuel price hikes since October 2007,” Ms Joy said.

“The high fuel price has significantly increased the cost of operations and if it continues, it will make certain routes more uneconomical to operate,” she said.

“The jet fuel price has increased by more than 30 per cent since our September fuel forecast.”

Ms Joy said with the airline’s network operations consuming more than 45 million gallons of jet fuel per year, they had implemented initiatives to maintain operations.

She said the airline had established a fuel smart task force to look at ways of being more fuel efficient.

But she said if the high fuel prices continued, initiatives such as matching capacity with demand, particularly during trough periods, would be introduced.

She said they would also explore the option of reducing services where appropriate.