News > What does the past tell us about airlines’ profits when crude oil prices rise?

What does the past tell us about airlines’ profits when crude oil prices rise?

Gross spreads are expected to come under pressure as the complete rise in fuel prices cannot be passed on to the end customer.

Spreads are calculated as RASK (revenue per available seat kilometer) minus CASK (cost per available seat kilometer). The passenger load factor (PLF) follows an inverse relationship with fuel prices.