Fuel Takes Off

Airline earnings are grounded

To cut down on weight and save fuel, Charles Lindbergh flew the Atlantic in 1927 with neither a radio nor a parachute. Half a century later, airlines are still trying desperately to conserve fuel. The reason right now is that the average cost of jet fuel has soared from 400 to 850 per gal. in the past twelve months. This year the twelve largest U.S. carriers will spend almost $10 billion, about 30% of their operating budgets, for jet-engine fuel. That is an increase of 20% over last year. Fuel has become so expensive that six of the ten largest lines are expected to lose money this year, and the other four carriers to see earnings erode.

In order to cut down costs, airlines are now developing ingenious means of conserving fuel. Planes are flying higher, since the thinner air at lofty altitudes causes less drag, thus giving more miles to the gallon. At Eastern Air Lines "dog legs," or indirect routes to include out-of-the-way stopovers, have been eliminated. Heavy jet-fuel drinkers like the Boeing 707 are being phased out in favor of more abstemious planes, like the DC-10 or the 747. In order to cut 60 to 250 lbs. off a jet's weight, Eastern has even stripped the white paint off its fleet, revealing the silvery, polished metal underneath. The fuel saving: almost $1 million per year. Workers are coating the leading edges of some Pan American, Delta and Continental/Air Micronesia jet wings with a plastic substance that cuts down on air friction, reducing drag and saving up to $30,000 a year in fuel costs per aircraft.

Eventually, of course, passengers will pay for most of the increased energy costs. Last week the Civil Aeronautics Board gave the airlines permission to increase domestic fares by 2.5% to help offset rising fuel prices and other costs. Air fares have now risen 28.5% in the past year.

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