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Article: ANA, JAL GRAPPLE WITH RECORD-HIGH FUEL COSTS.
- Article from:
- AsiaPulse News
- Article date:
- June 22, 2005
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TOKYO, June 22 Asia Pulse - Rising fuel costs are becoming increasingly burdensome for All Nippon Airways Co. (TSE:9202) and Japan Airlines Corp. (TSE:9205), forcing both companies to cut expenses and hike fares.
With fuel costs accounting for 10-15 per cent of operating expenses, the airlines may see their earnings impacted despite rationalization efforts.
At the beginning of the fiscal year, ANA had projected an average price of US$57 per barrel for the entire year for Singapore kerosene, the benchmark for airplane fuel prices, while JAL estimated the price at US$54. But the soaring prices of crude oil have pushed fuel prices up to more than US$70 per ...