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Higher Fuel Prices Could Hurt Profits for Airlines, Cruise Lines

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The aviation and cruise industries took a hit on the stock market Monday as oil and gasoline prices rose due to weekend attacks on Saudi Arabian oil installations.

According to airlines-retail-and-cruise-shares-fall-refiners-surge-as-spiking-crude-will-lift-fuel-costs.html” target=”_blank” rel=”nofollow noopener noreferrer”>CNBC.com, companies saddled with high fuel costs such as airlines and cruise lines saw their stock drop as analysts showed fears that the increase in oil and gasoline prices will “hurt sales and squeeze profits.”

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The increased cost of fuel as a result of the reduced production following drone attacks caused American Airlines stock to fall by four percent, Delta Air Lines by two percent, United Airlines by 1.8 percent, Southwest Airlines by 0.9 percent and Alaska Air by 0.8 percent.

“Jet fuel is 15 cents per gallon higher today than it was on Friday and we expect the U.S. airline stocks to be pressured until they are able to offset the cost of fuel,” Cowen equity researcher Helane Becker told clients.

Cruise lines are also feeling the squeeze, with the reduced production resulting in a three-percent drop for the Carnival Corporation and a 2.4-percent decrease for Royal Caribbean International.

As a result of the spike in prices, analysts from Evercore ISI said airlines could be forced to make a full “reset of revenue expectations.”

American Airlines is the company most impacted by the price increase, as the carrier is the world’s largest consumer of jet fuel.

“Higher fuel serves as a healthy reminder of the volatility of the inputs and may prove timely as carriers contemplate 2020 growth plans and cadence of Max returns,” Evercore’s Duane Pfennigwerth told CNBC Monday.

This post was published by our news partner: TravelPulse.com | Article Source |

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Strange Odor at Oakland Airport Sends Travelers to the Hospital

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We have seen more issues with strange odors on airplanes in the last year or so than at any time, some so severe they required a diverted landing.

Now comes word that another incident has taken place, only this time it was actually inside the airport.

Four people were taken to local hospitals by the Oakland (Calif.) Fire Department on Tuesday after an unknown substance began giving off a strange odor at Oakland International Airport.

According to Fox News, the odor came from a small box at one of the ticketing counters that is used to discard items that cannot be brought on a plane via carry-on bag – water bottles, bottles of cologne or mouthwash larger than three ounces, etc.

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The airport played it safe and called the fire department, which sent a Hazmat crew according to the NBC TV affiliate in the Bay Area. There was no disruption to airport services, though four people were taken to the hospital to be checked out for precautionary reasons.

This is the latest in a series of numerous reports of odors emanating from a plane or airport just in the last year or so alone, much less beyond that time frame.

Some have been fumes that have forced flights to land.

Some have forced flights to divert to other airports.

Some have been so overwhelming that passengers and crew were hospitalized.

And some have even been visible – if you like your airplane cabin filling with an unknown fog.

The Oakland Fire Dept. is still investigating the cause of the odor.

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