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Airlines adjust to higher jet fuel prices

Qantas is the latest among the airlines in Singapore to join a growing list of global carriers which are cutting capacity and adjusting to a new environment US$170 per barrel jet fuel prices. Korean Air, American Airlines, US Airways and Delta are just some of the more recognizable names on a growing list of global carriers which are paring capacity on selected routes in response to soaring fuel price, which is eating heavily into their yields and bottom lines. Air New Zealand, which said its pre-tax profit for the year ending June 30 would fall by more than 23% due to soaring jet fuel prices, is already considering parking some aircraft if the present conditions continue, and is cutting capacity on its Auckland-London Heathrow route. Cathay Pacific plans to phase out 23 747-400s beginning in 2013 in an effort to realize fuel savings of 22% per seat. (May 30, 2008)