Strong Q3 results tempered by concern over fuel prices

10/25/2010 | Aviation Week & Space Technology

The U.S. airline industry reported a stellar third quarter last week, but some fear rising fuel costs could blunt that momentum in the coming months. At American Airlines, for instance, CEO Gerard Arpey noted that third-quarter fuel costs were up $123 million year-over-year and that the average price per gallon was expected to rise from $2.24 in the third quarter to $2.41 in the fourth. Other airlines also expressed caution on rising fuel bills, and at least one analyst warned that some airlines could face a fourth-quarter loss due to higher fuel prices.

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