Soaring oil prices and a collapse in consumer confidence has left airlines in a worse state than after September 11 Airlines' fuel bill was going up even faster than other oil consumers because refiners had increased their profit margins from $6 a barrel to $40. That meant that when crude oil was trading at $130 a barrel, airlines were paying $170 for their aviation fuel. A one dollar increase in oil prices added $1.6 billion to the industry's operating costs. Until this year strong demand for seats had enabled airlines to cope with earlier price rises. But the slump in consumer confidence meant this was no longer true, especially with the premium market faring particularly badly. For the first time in a number of years the number of business class passengers across the industry had dropped. Gasoline: Rising gasoline prices and increasing price volatility are painful to consumers and producers and adversely affect the U.S. economy. Gasoline Price: � 53% crude oil price � 16% federal and state taxes � 22% refining costs � 9% marketing and distribution costs Diesel: ......

Word Count: 4529
Page Count: 18.1 (250 words a page / double spaced)

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