Northwest CEO: $105 oil a 'serious budget-breaker'

AP, via MLive.com:

Quote:

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Northwest Airlines CEO Doug Steenland: $105 oil a 'serious budget-breaker'
by Joshua Freed | The Associated Press
Tuesday March 11, 2008, 8:35 AM

MINNEAPOLIS (AP) -- Northwest Airlines CEO Doug Steenland called $105 oil a "serious budget-breaker" on Monday and warned that high fuel costs are a "difficult financial challenge" for the carrier that emerged from bankruptcy just nine months ago.

Oil jumped above $108 a barrel on Monday. Fuel is now the biggest expense at Northwest Airlines Corp. and most other airlines. Northwest is Michigan's largest passenger air carrier, with a major hub in Detroit.

Steenland said if oil remains above $100 a barrel, it will cost Northwest $1.7 billion more this year than it planned for. [Full Article]

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AP, via MLive.com:

Quote:

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Northwest Airlines CEO Doug Steenland: $105 oil a 'serious budget-breaker'
by Joshua Freed | The Associated Press
Tuesday March 11, 2008, 8:35 AM

MINNEAPOLIS (AP) -- Northwest Airlines CEO Doug Steenland called $105 oil a "serious budget-breaker" on Monday and warned that high fuel costs are a "difficult financial challenge" for the carrier that emerged from bankruptcy just nine months ago.

Oil jumped above $108 a barrel on Monday. Fuel is now the biggest expense at Northwest Airlines Corp. and most other airlines. Northwest is Michigan's largest passenger air carrier, with a major hub in Detroit.

Steenland said if oil remains above $100 a barrel, it will cost Northwest $1.7 billion more this year than it planned for. [Full Article]

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The same will go for any airline, Southwest included.

I guess you'd see a rise of selling old planes, gas guzzlers etc etc

Any higher and it will most likely, Airlines have to do some serious thinking.

Alex