Lighter Snack Carts, Less Paint... And Fewer Planes

Since fuel costs represent about a third of airline costs... why haven't airline ticket prices risen to match the spike in oil prices?

"Any time you have increases in crude oil prices, the airlines are going to take a hit," Morningstar airline analyst Brian Nelson told The Boston Globe, adding fuel prices are "instrumental to their cost structure."

Airlines are reluctant to do raise fares, though, for fear they could lose customers... so some have found ways to trim cost in places you'd expect, and some you might not.

Alaska Airlines plans to replace 16 older MD-82s with 737-800s, which use 18 percent less fuel. The airline also plans to increase its use of satellite navigation to shorten routes.

American Airlines -- saddled with the largest fleet of MD-82s and -83s around -- is making aerodynamic modifications to the tail cones on those planes to make them more appealing to the wind. Throughout its fleet, the Fort Worth-based carrier -- already known for its primarily bare-metal livery -- is now using even less paint on its aircraft, to reduce weight and prevent drag-causing chipping.

Both Alaska and American also note they use beverage carts that are 20 pounds lighter than older models.

"It truly remains one of the top challenges facing the industry today," said American CFO Thomas W. Horton of combating fuel costs, during a December investor meeting.

Delta is among airlines retrofitting its planes with "winglets" to save about three percent in fuel. Delta has also invoked the most direct fuel conservation tactic -- cancelling some flights, and declining to renew leases on some older aircraft.

"Some of our competitors talk about their new fuel-efficient fleets," Delta CFO Ed Bastian told investors. "We think actually one of the best ways to manage the fuel crisis is actually not to fly the aircraft."

For some airlines, grounding aircraft and cancelling flights have not been voluntary moves. MAXjet Airways and Big Sky Airlines both announced in the last few days they will sell off their aircraft and cease operations.

FMI: www.aa.com, www.alaskaair.com, www.delta.com