The Department of Transportation's Bureau of Transportation Statistics has released figures showing a decrease of 1% in August in the average cost of aviation fuel per gallon when compared to the same month last year. The cost average was higher than in July, however. Fuel consumption decreased 3% from a year earlier.
American Airlines has announced plans to reduce its capacity by 1% in the first half of November after an increase in flight disruptions in September. The airline blames the disruptions on pilot issues and says it hopes to return to normal operations before the holiday season.
With extra baggage fees and rising fuel prices, it may be hard to believe that air travel is actually getting cheaper, this feature says. Using data from A4A, Mark J. Perry of the conservative think tank American Enterprise Institute looked at the average cost of a round-trip domestic flight in 2011 dollars. "Overall, consumers have reaped significant benefits from the deregulation of airlines in 1979, and have saved billions of dollars in lower fares," Perry wrote.
Canadian investment analysts place Air Canada stock in the "speculative" category, meaning the company is an investment that comes with high risk but could have a huge payoff. "It's not often that I will be kind of pounding the table for an airline as an investment opportunity, but there are times when that investment opportunity can make some very attractive upside returns and this, we believe, is one of those times," said Walter Spracklin of RBC Dominion Securities, one of Canada's biggest banks.
Attendees at the recent Aviation Biofuels Development Conference learned the potential role that the reformed system for Renewable Identification Numbers may play in fueling investment into the industry. A revamped RIN regime combined with regulatory validation may be what it takes to renew investor interest in the technology, says Graham Noyes, a partner at law firm Stoel Rives.