Baltimore, MD (PRWEB) May 30, 2008
With airlines now charging for checked baggage and airline ticket prices rising, Americans are feeling the impact of record-high fuel costs. Add the weakening economy to the mix, and air travel will become prohibitively expensive for many Americans as the summer travel season begins.
Oil and energy expert Byron King warns this is just the beginning:
King believes that with record-high fuel and oil prices, we will see a disruption in airline travel schedules as early as next year and flying will cease to be an option for many Americans. Most of the middle class will be priced out of air travel.
According to the Jet Fuel Price Monitor, the global average price paid at the refinery for aviation jet fuel is up 97.9% from a year ago.
King says: "Fuel costs are killing the airlines. Most flights lose money. Roughly 70% of U.S. cities risk losing significant elements of their scheduled airline service because of soaring jet fuel costs. 20% of airline seats could be eliminated in the next six months. Some airlines cannot ground their older planes fast enough."
King's forecast is already becoming a reality. According to MarketWatch, American Airlines announced it would eliminate 12% of available flights -- as many as 500 -- by the end of the year.
Don't expect driving to be the answer this travel season. Record-high oil prices are pushing average prices at the pump closer to the critical $4 per gallon mark. The federal Energy Information Administration expects a $3.66 per gallon average this summer.
King's greatest concern is this: In an era of expensive energy and with oil and gasoline prices soaring, our nation has to bring new energy supplies such as geothermal, solar, nuclear and other alternative energies to economize on energy sources that are still available.
Unless we are able to replace the depleting oil supply, prices will continue to rise, planes will be more crowded and fewer flights will be available.
Byron King is the editor of two acclaimed investment advisory newsletters, Outstanding Investments and Energy & Scarcity Investor and contributes to http://www.energyandoil.com. Mr. King is also a trained geologist with experience in the exploration and production division of a major international oil company.
Byron holds advanced degrees from Harvard, the University of Pittsburgh and the U.S. Naval War College.
He has been featured in media outlets across the U.S., including recent appearances on CNN, CNBC and Fox Business News.