Is this the end of cheap flights?

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0:00Fuel generally accounts for about 25 to

0:0330% of operating costs for an airline.

0:06If the price of fuel is impacted, so is

0:08the airlines bottom line.

0:10>> So that we're talking literally hundreds

0:12of millions into the billions of dollars

0:13collectively as as a US industry and

0:15extra fuel.

0:16>> And you've probably noticed how airlines

0:18have passed many of those costs on to

0:20consumers.

0:21>> They upped bag fees, which will not come

0:23back down, by the way. They are

0:24immediately upping fairs. They are

0:27cutting routes that are now unprofitable

0:28because it's too expensive to run them

0:30with the higher fuel costs.

0:31>> CEO Scott Kirby says consumers should be

0:34aware that ticket prices are rising and

0:36he warns the increase needs to be at

0:38least 20% to offset rising fuel costs

0:41amid the war with Iran.

0:43>> We are absorbing probably 50% of the

0:45cost on our own and probably about 50%

0:48will go into pricing. For the big

0:50companies like Delta, United, and

0:52American, despite revised profit

0:55outlooks, business is still booming.

0:57That's because they're much more

0:58dependent on their premium offerings and

1:00customers who are still reliably buying

1:03expensive flights. If you look at the

1:05profit per seat, many airlines make much

1:07more money off business class and

1:09particularly premium economy passengers.

1:12>> Before the 1978 airline deregulation

1:15act, flying was firmly for the wealthy.

1:18Since then, the introduction of lowcost

1:20airlines has made travel cheaper and

1:23more accessible for many. But these

1:25smaller, more affordable carriers don't

1:28have the same resources as big companies

1:30for offsetting fuel costs.

Is this the end of cheap flights?

Piliin ang mode ng pag-aaral:

Highlight:

3000 Oxford Words4000 IELTS Words5000 Oxford Words3000 Common Words1000 TOEIC Words5000 TOEFL Words

Mga Subtitle (43)

0:00Fuel generally accounts for about 25 to

0:0330% of operating costs for an airline.

0:06If the price of fuel is impacted, so is

0:08the airlines bottom line.

0:10>> So that we're talking literally hundreds

0:12of millions into the billions of dollars

0:13collectively as as a US industry and

0:15extra fuel.

0:16>> And you've probably noticed how airlines

0:18have passed many of those costs on to

0:20consumers.

0:21>> They upped bag fees, which will not come

0:23back down, by the way. They are

0:24immediately upping fairs. They are

0:27cutting routes that are now unprofitable

0:28because it's too expensive to run them

0:30with the higher fuel costs.

0:31>> CEO Scott Kirby says consumers should be

0:34aware that ticket prices are rising and

0:36he warns the increase needs to be at

0:38least 20% to offset rising fuel costs

0:41amid the war with Iran.

0:43>> We are absorbing probably 50% of the

0:45cost on our own and probably about 50%

0:48will go into pricing. For the big

0:50companies like Delta, United, and

0:52American, despite revised profit

0:55outlooks, business is still booming.

0:57That's because they're much more

0:58dependent on their premium offerings and

1:00customers who are still reliably buying

1:03expensive flights. If you look at the

1:05profit per seat, many airlines make much

1:07more money off business class and

1:09particularly premium economy passengers.

1:12>> Before the 1978 airline deregulation

1:15act, flying was firmly for the wealthy.

1:18Since then, the introduction of lowcost

1:20airlines has made travel cheaper and

1:23more accessible for many. But these

1:25smaller, more affordable carriers don't

1:28have the same resources as big companies

1:30for offsetting fuel costs.

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Is this the end of cheap flights?

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Is this the end of cheap flights?

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