As fuel prices go up, so do bottom line worries for smaller, regional airlines
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Fuel prices are on the rise, and that’s a problem for budget airlines that need fuel prices to stay low so they can keep ticket prices competitive. Fuel can account for up to 25 percent of airline operating costs, so it’s a big expense, but one that’s easier for the larger airlines to absorb. Smaller regional airlines are already dealing with other issues — pilot shortages, aircraft availability — and rising fuel costs are adding to their bottom line woes.
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