SFGate: American Airlines fuel costs up by $300 million

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This article was sent to you by someone who found it on SFGate.
The original article can be found on SFGate.com here:
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inancial1750EDT0323.DTL
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Thursday, August 26, 2004 (AP)
American Airlines fuel costs up by $300 million



   (08-26) 14:50 PDT FORT WORTH, Texas (AP) --
   Soaring jet fuel prices will force American Airlines spend an additional
$1 billion for fuel this year, the carrier said Thursday in a regulatory
filing.
   "Our outlook for the third quarter and the rest of the year has worsened
and accordingly we are providing an update to our cost guidance," the
nation's largest airline said in a filing with the Securities and Exchange
Commission.
   American also hiked fuel price guidance for the third quarter and the
year. The airline said it would spend $1.25 a gallon, rather than $1.20 a
gallon, or an additional $300 million or more for fuel in the third
quarter. For the year, the carrier's fuel price guidance rose to $1.17 a
gallon from $1.13 a gallon.
   Other airlines face the same problem with high oil prices, which have
retreated this week since reaching nearly $49 a barrel late last week.
United Airlines' parent UAL Corp. said last week that the increase in oil
prices will hike jet fuel costs by $500 million more this year than the
airline projected at the end of 2003.
   Light crude for October delivery dipped 37 cents to $43.10 a barrel
Thursday on the New York Mercantile Exchange. In London, Brent crude
futures dropped 35 cents to $40.33 a barrel on the International Petroleum
Exchange.
   Shares of American's parent, Fort Worth-based AMR Corp., fell 8 cents to
close at $9.34 on the New York Stock Exchange, then lost another 23 cents
in the late trading session.

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Copyright 2004 AP

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