Are you surprised? Fuel costs are rising. AMR Corp. (PINK:AAMRQ), parent of American Airlines, just declared bankruptcy. Carriers are abandoning less profitable routes, resulting in crowded planes and increasing fares for anyone looking to travel in 2012. Routes where there is competition from discounters may see less pressure, but you can bet your tickets are going to be flying higher this year.
According to the Los Angeles Times, “the nation’s airlines buy about 48 million gallons of fuel each day at a price that jumped nearly 40% in the last year.” Ouch!