Airlines Find New Ways to Cut Corners as the Price of Fuel Climbs

Drivers aren't the only ones burdened by skyrocketing fuel costs. Price hikes are hitting the airline industry hard. In light of rising oil and jet fuel prices, airlines are finding new ways to cut corners.

The days of the complimentary airline meal are long gone; American Airlines has even started charging for snacks. But it's going to take more then cutting back on a few peanuts to even put a dent in rising fuel costs. Gas prices have risen nearly 85% in the last year, and fuel costs now account for about 40% of ticket prices; a stark hike from 15% just eight years ago.

To save money airlines are looking to lighter building materials, limiting the amount of passenger baggage, and charging for checked in luggage. On Jet Blue flights, maintenance workers are dumping water and waste from the airplane restrooms, each time the plane stops, rather then waiting until the aircrafts reach their final destinations. American Airlines no longer fills it’s water tank completely. Delta Airlines has removed the phones from the coach class seating, and eliminated most of the on-flight microwaves, since hot meals are less frequently served. And these are just some of the ways airlines are watching their weight.

Lightening the load is a big part of cutting costs. According to Tim McGraw, director of corporate environmental and safety programs for Northwest, for every 40 pounds eliminated, the airline saves $440,000 annually.

Some of the major airlines are already trading in gas guzzling planes for newer fuel-efficient models, but others can’t afford to do so. Airlines are even losing pricing power in this bleak economy. When airfares go up, ticket sales drop. The current predicament is sure to push some existing carriers out of business. American West Airlines, which merged with US Airways, is slowing flight speed to maximize fuel efficiency.

In the meantime consumers can expect to see less frequent flights and suspended services as airlines cut back to stay abreast.

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