Jazz Air has proposed to chop about 5 percent of its staff in the near future. The announcement follows in response to cuts declared last month by Air Canada, its main customer in an effort to cope with surging fuel prices.

Notably, Jazz Air is the regional feeder carrier for Air Canada. The airline observed that the steps taken by the airline to roll back 270 jobs and 5 percent cut in capacity are unavoidable to match the available resources with its forcibly minimised expectations for revenues.

According to Jazz spokeswoman Manon Stuart, the staff cuts will affect all areas of the Halifax including pilots, customer service agents, flight attendants and maintenance and administrative staff, in addition to managers, said. Also, if Air Canada is forced to squeeze its service and work force more, then there could be deeper cuts could be expected.

Aegean Airlines, the reputed Greek carrier said in a statement released on Friday that it will raise ticket surcharges for domestic and international flights by up to three euros to meet the soaring cost of jet fuel. Most notably, the carrier ably competes with the state-owned Olympic Airlines operating domestic and international routes. The airline reported a loss of EUR4.4 million euros (USD$6.91 million) during the first quarter due to 57 percent jump in energy costs.

The company noted in a statement, "Taking into consideration the continuing rise of oil prices... Aegean is forced to increase the surcharge on its ticket prices." During the first quarter, Aegean, ably continued to expand its business even amid challenging conditions forced by the soaring prices of oil. The company observed that when compared with the same period last year, the prices of fuels in dollars have risen 110 percent.

The company reported, "Fuel costs account for 35 percent of total company costs, despite the ongoing investment in new A320/321 Airbus planes, which reduce fuel consumption."

Amidst unprecedented soaring of oil prices, Jazz, the regional airline associated with Air Canada has taken a decision to dismiss not less than 270 among its 4,980 employees in order to cope up with the crisis of the times. In addition, the carrier foresees that the number of travelers with the airline is expected to decline due to increase in the price of tickets and due to the fact that increasing number of potential clients are canceling their travel plans.

However, Joseph Randell, Jazz's chief executive officer feels that the biggest problem of the times for all the airlines that singly stands out as a highly bothering issue is the record high price of fuel. He observed, "We are in a period of great uncertainty and cannot predict where the price of fuel is going," Randall explained. The Jazz chief did, nonetheless, indicate that he continues to hold out hope for an upswing in the air travel industry, as soon as fuel prices start to go down.

Based in Halifax-Nova Scotia, Jazz, is a highly popular carrier in Canada and enjoys the pride of owning the second largest fleet of the country. However, after the mainline service of Canada, WestJet remains the second largest airline in the country as all the planes of Jazz are relatively smaller, regional Canadair-Bombardier jets.

In a highly significant move, LTE, the low-cost Spanish carrier has started operating its flight services from Norwich Airport to three highly popular destinations in its homeland. According to the recent move, the airline is to commence its services to Barcelona, Alicante and Majorca with effect from this Saturday (July 5). This is done by filling up the slots opened up recently, when Flybe cancelled its services operated to Paris and Glasgow.

The airline has made elaborate arrangements to mark the launch of this most significant route. As the first inbound flight leaves Barcelona, it will carry with it a host of Spanish VIPs. Most notably, this group will seek to heighten the appeal of Norwich as a tourist destination.

Maria Luisa Moreno, the LTE spokesperson noted, "The carrier was highly enthusiastic about promoting the beautiful green countryside in Norfolk to Spanish holidaymakers, who want to visit different places."

There has been a serious controversy surrounding the plans by the government to replace the Air Passenger Duty (APD). Over and above, this issue has taken a new twist when easyJet, the low-cost airline threw its weight behind the government.

Whitehall says that the present system bases charges entirely on the class in which a passenger flies irrespective of whether it is a long-or short haul route. However, he says that this needs to be replaced with a more precise measurement taking into consideration the distance flown by the passenger. Under the present way of calculating, passengers needs to pay £10 to £20 APD in Europe depending on the class in which they travel - economy, business or first class. However, the charges are between £40 and £80 for long-haul services.

The government is of the opinion that the present approach is not fair and it has called for a new system to be introduced which takes into account the take-off weight and distance traveled in the individual flights.

Most interestingly, Belfast International Airport is preparing itself for a record 1.2 million passengers during this summer. The airport has a wide range of more than 100 worldwide destinations to choose from. It also has the credit of serving more than 5.5 million passengers estimated to use the airport during this year. Over and above, more than 400,000 people are expected to pass through the airport across the traditional twelfth fortnight.

A comprehensive charter programme has been launched at the airport that includes flights to interesting destinations like Balearics, Canaries, Spain, Croatia, Italy, Cyprus, Greece, Turkey, Portugal, Bulgaria and Tunisia in addition to USA and Canada. This shall certainly result in a record number of holiday makers go off through the Belfast airport.

John Doran, Belfast International managing director noted, "This year's figures are extremely encouraging against what is a testing time for the travel trade. The choice and availability of destinations on offer is better than ever with a number of new, exciting locations available on the route network."

In a statement, a ministry official noted on Wednesday that the transport ministry of Indonesia grounded not less than five small airlines earlier this week as they failed to meet safety standards. According to Budi Mulyawan Suyitno, the director general of air transportation, the transport ministry had given Helizona, SMAC, Asco Nusa Air, Tri-MG Intra Asia Airlines and Dirgantara Air Service a notice period of three months to comply with minimum safety standards.

Suyitno observed, "Those airlines, with small planes for rent, didn't meet safety standards. If within three months they don't show any improvement we will revoke their air operator's certificate."

According to Suyitno, the present move by the ministry is part of an on-going process to considerably improve the safety standards of Indonesian airlines. For instance, in the month of March, Adam Air, the Indonesian budget carrier that suffered a series of accidents and showed a default in debt payments was grounded for safety concerns. Following the liberalization, the airline industry of Indonesia has grown rapidly during the past decade, with several new players entering the arena besides a wider choice of routes available across the archipelago.

In a recent announcement, Copa Airlines, a subsidiary of Copa Holdings S.A., said that it is about to commence a new service from Panama and connecting cities to Belo Horizonte, Brazil, with effect from 21st August 2008.

Pedro Heilbron, CEO, Copa Airlines observed, "This new flight to Belo Horizonte strengthens our position as the best travel option in Latin America. We continue to expand our extensive route network and reaffirm our commitment to the development of business and tourism in Latin America and the rest of the American continent."

The new flight is scheduled to depart Panama on Mondays, Tuesdays, Thursdays, Saturdays and Sundays at 6:48 p.m. to arrive in Belo Horizonte at 3:29 am on the next day. The return flight will depart Belo Horizonte on Mondays, Tuesday, Wednesdays, Fridays and Sundays at 4:28 am, arriving in Panama at 9:11 am. Notably, Belo Horizonte happens to be the 42nd destination of the airline in addition to being the fourth in Brazil. Belo Horizonte has the credit of being the third largest city in Brazil with a population in excess of five million, besides housing a very strong industrial sector.

The highly controversial 67 percent increase of passenger fess at Norwich Airport has given way to the axing of two winter routes offered by Thomson. This has been reported by the Evening News. Thomson has announced that it will not be able to offer the winter flights to Gran Canaria and Tenerife any longer as it is not commercially viable following the decision of the airport to increase the Airport Development Fee (ADF) from £3 to £5 per passenger with effect from September.

This winter, the passengers who have booked on the weekly flights to the Canaries will see that their services are cancelled and rerouted through different airports that include Luton and Stansted. This move by the airline follows that of the decision taken by Flybe to scrap its direct flights to Glasgow and Paris besides reducing the number of flights to Guernsey from Norwich in the month of April.

Addressing the newspaper, a spokeswoman of the airline observed, "We appreciate that route changes can be inconvenient and apologise to any customers who may have been affected by the decision to operate summer flights only out of Norwich airport. There has recently been a review into the profitability of these winter routes, partially due to the increase in the Airport Development Fee this year, and the conclusion has been made that winter routes from Norwich Airport are no longer commercially viable. However, the summer flights to the Canaries and other Spanish destinations, as well as Corfu, Malta and Cyprus, would be unaffected."

In a highly welcomed move, Gulf Air is to commence its services to Hyderabad with effect from 1 July 08. On this day, the inaugural flight is to take off from the Bahrain International Airport at 00.05 am. The present move follows the most successful launch of the carrier's services to China's commercial capital of Shanghai on 16th June 2008.

Addressing the press on the eve of the launch, Gulf Air Chief Executive Officer Mr. Bjorn Naf noted, "Hyderabad has been one of our favourite destinations in our expansion plans for quite sometime and I am glad we were able to link Hyderabad- the emerging IT and bio-tech hub with "Business Friendly" Bahrain."

He too added, "This new route is another example of successful and long-established bilateral relationship between Bahrain and India and, Gulf Air, as the national carrier of the Kingdom, is proud to be a part of this growing relationship. Hyderabad is our eighth Indian destination and we hope to further expand our relationship by adding two more destinations in India within a year."

China based airlines including China Southern Airlines have decided to raise domestic jet fuel surcharges to about 50 percent with effect from Tuesday for offsetting the pressure ensuing from shooting oil prices. With citation to regulators, an aviation industry web site reported this information on Monday.

According to the approvals made by regulators, the report says that the increase in domestic fuel surcharges are effected from CNY60 to CNY80 yuan (USD$11.67) for flights operated over 800 kilometre (497 miles) or less, and from CNY100 to CNY150 for flights operated over longer distances.

Also, the announcement made by the regulators says that the ex-refinery jet prices of the country have been raised by CNY 1,500 per tonne with effect from June 20. This factor has considerably delivered a double-whammy to domestic airlines that are already suffering from a drop in passenger volume from the month of May, during when a devastating earthquake hit southwest China.

Starting from this week, direct weekend flights are to fly between Taiwan and China. This move is expected to give a boost to carriers on both sides of the Taiwan Strait. This can be achieved only at the expense of Hong Kong; however, only after all the present restrictions are lifted.

In a significant deal signed on 13th June, Beijing and Taipei agreed to introduce the first regular weekend flights after 1949. This has been achieved as a result of a decade long stalemate between China and the neighboring island that china claims as its own. Most interestingly, a great number of flights operated between China and Taiwan has to stop between a third external destination such as Hong Kong or Macau. This shall certainly prove to be a boost for airlines in these hubs.

Gradually, unlimited direct flights in the route are to wipe off not less than 10th off the bottom line of Cathy pacific, the flagship carrier of Hong Kong, which has henceforth enjoyed a large part of the business of transporting the passengers on the long winding route according to Nomura.

In a benign and innovative move, a new tunnel has been made to help reptiles pass under the road at Robinhood Airport. This is to ensure their safety. Notably, the tunnel has been created taking into account the biology of the reptiles, featuring the biology of reptiles in mind, offering a warm and welcoming space employing LED lighting and heating coils.

The idea of creating tunnels for wild life is not a new idea. But these are generally constructed for mammals and remain dark. They are even subjected to flooding. The new concept of a tunnel for cold-blooded creatures had to be evolved separately because the internal temperature of their body clearly reflects the external temperature of the surroundings.

As the reptiles are poikilothermic, they require warmth to be active and the new arrangement can dissuade them from using the uncomfortable wild life tunnel available for them. The new tunnel is adequately heated and lit to ensure a comfortable stay during the seasons when reptiles normally remain active and has been incorporated using energy efficient materials.

On Friday Sterling, Nordic low fares carrier, said that it would cut about twenty per cent of its 1,000 staff, both pilots and cabin crew, to combat the impact of a difficult aviation market.

The Icelandic-owned carrier said that it would no longer run its bases permanently at Malmo and Gothenburg in Sweden and Billund and Aalborg in Denmark from the first day of the coming year, strengthening its work force at its bases in Scandinavian capital cities of Stockholm, Copenhagen and Oslo.

Mr. Reza Taleghani, the chief executive of Sterling, said that he expected to reach the staff cuts mostly through voluntary retirements and would seek to keep some flexibility to spread out again in the coming year if the market allow.

Announcing its new policy, Continental Airlines has come forward to allow its customers make any changes to flights within 24 hours of the original schedule for departure. This will be carried out on request by the airline for a discounted change fee. Permitted within the 24-hour period on the same day, customers having restricted tickets can change to any other flight scheduled to depart within 12 hours, making a discounted change fee. Earlier, the airline allowed its customers to choose from those flights departing within 3 hours of the scheduled departure.

The announcement also offers an attractive discount over the change fee for same-day flight changes that are normally applicable to restricted tickets. For instance, the fee will be $50, or $25 for OnePass Platinum and Gold Elite members of the airline. Notably, this fee is applicable to all itineraries that are solely operated by Continental like Continental Express, Continental Connection and Continental Micronesia. Over and above, passengers who have unrestricted tickets or fares without any penalties for changes can make changes totally free of charge, provided the seats are available. If the seats are not available, the customers may still opt to standby. Later, the fee will be charged if the seat is cleared in the earlier flight.

Passengers can confirm same-day flight changes by checking in at continental.com by intimating the Continental Airlines reservations office either through an airport kiosk or through a Continental airport representative. Further details can be had from www.continental.com

In a move to cope up with the impending challenges to survive, Malaysia Airlines has raised the fuel surcharges on its international flights by up to 80 percent. The airline has also warned that across the globe, a fare increase is an unavoidable exercise to prevent the industry from collapsing.

According to the airline, it has decided to increase the surcharge by about 25 percent on its short-haul regional flights, and by up to 80 percent on its long-haul flights, with immediate effect. However, on domestic flights, the fuel surcharges remain the same.

For instance, the surcharge for a one-way Kuala Lumpur-London flight goes up to MYR736 ringgit (USD$225.70) from MYR600. Similarly, for a one-way Kuala Lumpur-Sydney trip, it has gone up to MYR608 from MYR422.

Recently concluding an agreement, the United States and Brazil have arranged to increase the in passenger flights between the two countries up by nearly 50 percent. In addition, the agreement also eliminates the existing restrictions on the number of airlines permitted to provide air services between the two countries. The agreement was made by Mary E. Peters, U.S. Secretary of Transportation.

Secretary Peters noted, "This agreement will help air carriers meet the growing demand for passenger and cargo services between the United States and Brazil. Now more than ever, it is crucial that we give U.S. carriers every possible opportunity to compete and succeed wherever passengers want to fly."

Enabled by the agreement, there is no limit to the number of flights that can be operated between the two countries; whereas, earlier only four carriers were allowed from either side. The agreement will be effected in four gradual phases between July 2008 and October 2010. According to secretary peters, the agreement will succeed in increasing the total number of carriers operated between the two countries from 105 to 154, for both the countries.

In a significant attempt to cope with the increasing oil prices, American Airlines has announced earlier this month that it has decided to axe several flights later during this year at several US airports including some of its main hubs namely Chicago and Dallas. 

Following the announcement made earlier, the largest carrier of the U.S. offered more details during this week pertaining to the reductions in capacity elaborating over the previous announcement.

American has decided to bring down the number of departures from Chicago O'Hare Airport, axing about 28 flights. Also in addition to this, its sister airlines American Eagle has decided to cut 34 flights with effect from September.

Recently, United Airlines, the major US carrier has indicated that it will ground around 100 of its aircraft thereby axing around 17% of its network. The entire operation is to be completed by the end of 2008. The move is in response to the mounting fuel cost that is causing a tremendous loss to the carrier.

It is noted that a major part of the axing operation will take place within the US However, the airline has confirmed that it will also considerably reduce its international network in the year 2009, working out to around 5% reduction. However, services operated from Heathrow are not to be disturbed as part of this exercise. In addition to the redundancies announced in the month of April, not less than 1,100 jobs will be lost during the exercise.

President and chief executive of United Airlines, Glenn Tilton, noted, "We are taking aggressive steps that reflect the current market reality. This environment demands the industry act decisively."

Reflecting the significant milestone achieved in the progress and development of both regional and international aviation at the capital of Kazakhstan, Air Astana presented a brand new Airbus A 320. Carrying the registered number of Р4-WAS, Airbus A-320 was delivered from the premises of the Airbus located at the Toulouse city. Most interestingly, the event marked the 6th anniversary of the airline in addition to the 10th anniversary of the city of Astana.

The most attractive features that distinguish the aircraft from the earlier makes are its highly enhanced design component and renewed symbols, in addition to the modern system of management entertainment. Over and above, the SATCOM integral system, enables supporting the seamless telephonic connection between the crew and the office. Most notably, Air Astana is planning to replace all of its Fokker-50 aircrafts from the fleet.

Increasing the quantity of aircrafts in the International Airport of Astana city shall support the plan launched by the Ministry of Transport and Communications of Kazakhstan to establish the airport as the largest and leading Aviation Technical Center in the whole of Central Asia and West Siberia.

In an interesting move, American Airlines has announced that on two of its designated flights, its customers can test a new in-flight Internet service this week. Following this phase, the facility will be made available broadly in about two weeks after the tests.

The airline is seriously considering the entertainment and information options to increase per passenger revenue amidst the conditions of the record-high prices of jet fuel. For this internet service, the airline will charge an additional fee ranging between $9.95 to $12.95 depending on the length of the flight.

The test of the new facility is launched by the airline in association with Aircell LLC, the carrier's technology partner. Initially, the test will be launched in two flights of the airline operated between JFK to LAX, in addition to one return flight in the same route. According to the statement made by Doug Backelin, the in-flight technology manager of the airline, passengers will not incur any additional charges during these trial runs.

According to a report published in Travel Weekly, a senior minister appears to have hinted that the Treasury has concrete plans to replace Air Passenger Duty with a tax on aircraft. According to this report, addressing a conference, Jim Fitzpatrick, the Parliamentary under-secretary for transport Parliamentary under-secretary for transport said, "Difficulties surround the decision. There are strong arguments that we should not proceed with the transition."

Expected to be implemented from November 2009, the move is expected to levy an aircraft tax in order to replace APD from 2009 November. The treasury is working on the above said proposal and the final details are expected to be unveiled in October enabling the tour operators to include the price of the tax while preparing the brochures. However, the provisional details are to be released as early as the end of July. On the contrary, the travel magazine states that the
Treasury is far behind the schedule and has actually taken no decisions. Quoting the industry sources, it says that it is already too late and it is rather very difficult to expect an announcement in the month of October.

It is said that any retreat in this regard will certainly dismay tour operators and airlines, which struggled hard for a switch from APD to a tax that reflects the relative carbon dioxide emissions of aircraft. However, while addressing the Sustainable Future for Aviation Conference in London, Mr. Fitzpatrick said that the government is under pressure from major airlines.

In a significant move to further enhance the travel experience of its customers, American Airlines has added up thousands of more hotel properties to AA.com. Quite interestingly, now the now the site has emerged among some of the leading resources in the industry featuring a highly innovative Price-Match Guarantee and a No Cancellation or Change Fee policy on every hotel booking made. All these added advantages have rendered AA.com a compelling resource for booking air travel in addition to hotel stays.
     
The recently expanded AA.com hotel site is offering 250 AAdvantage miles for each of the hotel bookings besides miles for every hotel booking made in addition to lowest rate guarantee and greater flexibility. Notable among the most attractive features of the enhanced site are a wider selection of hotels, traveler ratings, virtual tours, property photos and area maps. All these features ensure that the travelers get the right hotel at the right price irrespective of when and where they travel.

Derek DeCross, American's Managing Director - Interactive Marketing observed, "Over the years, we've added lots of features to AA.com to make it a one-stop shop for customers' travel needs. By expanding our hotel offering on AA.com, guaranteeing that customers will get the best hotel price, and assuring they can cancel or change their hotel stay without a fee, we're strengthening our commitment to enhance the travel experience every step of the way. Customers can count on AA.com as a convenient, competitive and complete resource for every aspect of their trip."

As a result of the new Interline Agreement signed by Aer Arann and Aer Lingus, now the customers can directly connect to the transatlantic services of Aer Lingus right from Cork Airport. The agreement enables direct bookings on aerlingus.com to and from Cork to all of the seven Aer Lingus USA destinations through the transaction of just one single booking. The agreement also facilitates the passengers to check-in at Cork Airport to travel directly to their final destination in the USA, while transferring to their flight at Dublin Airport. Most interestingly, the new arrangement is also made available for those customers travelling from the USA connecting to Cork Airport.
 
Garry Cullen, Aer Arann's Managing Director noted, "The ability to through check luggage all the way to your final destination from Cork, and transfer seamlessly to Aer Lingus' USA services in Dublin will be of great benefit to Aer Arann and Aer Lingus customers. The partnership with Aer Lingus will benefit Munster by making the region more accessible to the USA inbound tourist and USA corporate travel markets."
 
According to Dermot Mannion, the Chief Executive of Aer Lingus, the agreement is most likely to ensure a 'natural synergy' between Aer Lingus and Aer Arann, by offering greater accessibility to the USA to the customers in the Cork market. Over and above, the highly regulated and coordinated booking process offers the customers the facility to book flights on aerlingus.com from Cork directly to seven destinations in the USA through one single booking.

Aer Arann has put off its expansion plans this year, in the face of tough times, according to the reports by Irish Examiner.

The managing director of the carrier, Garry Cullen, said that it was not going to be a pleasant year and so it was important that the carrier made investments wisely in its product and service.

Mr. Cullen said, "We had planned to have a beauty parade with the different aircraft manufacturers this year with a view to picking aircraft for 2010, but we are now delaying that process for 12 months".

Europe's second-largest travel firm, Thomas Cook, today reported a strong summer sales.

The company, created a year ago from the association of the travel unit of German retailer Arcandor and MyTravel of Britain, also showed up a fifteen per cent reduction in its half-yearly operating loss, to £177.5 million.

Having over 3000 outlets including more than 1000 in Britain, Thomas Cook Group Plc, said it went on with the target of £480 million as its operating profits in the year 2010 and had been positive on achieving targets for the current year.

Confirm your bookings by the 30th of June and enjoy discounted flights to a number of Asian routes. This is great offer made by Emirates as at present time, due to rising fuel costs, airlines are finding it difficult to offer discounted rates.

Emirates, the Abu Dhabi-based carrier, are offering cut priced seats on its flights on a number of popular Asian routes.

The carrier has cut the cost of travelling to a number of popular cities in various regions, including Seoul and Hong Kong, with return ticket prices starting at as little as £503.

Palmair, a small Bournemouth airport-based carrier with only one thirty-four year old Boeing 737 aircraft, has been recognised as the third best in the world in the yearly Which? Awards. The carrier was also voted best for short-haul services.

The carrier was founded in the year 1957 by Peter Bath. Palmair European operates flights no more than two times a day, has a worker who does the seating schemes on the table of her kitchen and serves only 70,000 travellers per year, but it beat UK's flag carrier British Airways and Virgin Atlantic as well as 64 other carriers in the poll conducted by Which? for best value for money and experience.

Started flying 51 years ago and having a work force of 50 employees, the airline operates services to 14 European destinations including Tenerife, Spain, Portugal, Croatia and Corfu.

Air travellers are under the threat of a 40 per cent rise in the cost of flying over the next year unless the oil prices comes down, reports the Telegraph.

City analysts also said that those taking advantage of the budget airlines could be particularly affected in the future. The research shows that the increasing fuel costs will result in a downturn in the air travel sector.

The price rise estimate of between 30 to 40 per cent comes in a report by the investment bank, Morgan Stanley. The calculations were based on oil trading on the international markets at $136 per barrel.

Loganair has revealed that it will cut back its services to the Scottish Islands this summer in response to the record high costs of fuel that have doubled over the course of last one year.

At present, the carrier operates its services on the routes from Inverness to Lewis, Tiree, Campbeltown, Benbecula, Orkney, Shetland and Barra. It won't be very surprising now to know about some more cuts by other airlines also, as the aviation industry is facing one of the toughest problems that constitute the fuel prices that are rising unabated. It is expected that in the near future, the prices may go up further and there could be further problems for the industry.

At present, the carrier has not revealed details about the routes that will be affected by the planned cut backs.

On Thursday, Continental Airlines and United Airlines unveiled a global cooperation plan, the most recent step in the dance between the leading US airline companies as they consider mergers and partnerships to help fight high prices of fuel.

Continental Airlines, which suspended merger negotiations with United in the month of April, is also planning to fix United Airlines in the 'Star Alliance' set up, a noteworthy defection which resets the lines of war between the major carriers.

Continental will appeal to the US Department of Transportation (DOT) for the permission to link United, together with German carrier Lufthansa and Air Canada as well as six other airlines, in their established antitrust immunised partnership.

As all-time high fuel prices push US carriers to stop flights and reduce payrolls, Southwest Airlines, the Dallas-based carrier, could jump back in routes and spread out its business as it has done in previous slumps.

The carrier, which invented the budget airline structure in the year 1971, has $6 billion in the bank and $5 billion of fuel hedges on its account books, a weighty cushion that could allow it to move into markets that other companies find running at a loss.

Robert Mann, President of airline consultancy R. W. Mann, said, "Business cycle after business cycle, Southwest grows into the vacuum that's created by network carrier retrenchment. That's what they do".

American Airlines parent company AMR calculates approximately that the revenue it earns by operating one seat one mile rose between six per cent and seven per cent in the second quarter while its costs were projected to go up as the prices of oil continue to hit the sector.

AMR said in a filing with the US Securities and Exchange Commission that it had hedged around 33 per cent of its estimated fuel consumption for the current year with an average price of crude oil at $70 a barrel. On Wednesday, US crude traded above $132 per barrel.

In a research note, UBS airline analyst Kevin Crissey wrote, "Net, net there is no material change to our outlook for large losses".

On Wednesday Delta Air Lines said that it expected to earn a profit in the second quarter, and was planning to reduce domestic capacity by 13 per cent in the second half of the current year. This is great news in the wake of rising fuel costs around the world.

The carrier, which plans to take over Northwest Airlines, said that the estimated reduction in domestic capacity was more than the ten per cent cut the carrier forecast in the month of March.

Leading US carriers have announced reductions as they struggle with rising prices of oil, which have increased to almost double over the course of past 12 months. The airline companies had been pushed to increase ticket prices, introduce new fees, and cut routes, capacity and work force.

Air Canada, the country's largest carrier, which is planning deep cuts in work force and capacity to deal with soaring prices of fuel, may remove wide-body Airbus jets sooner than anticipated to cut costs, the chief executive of the carrier revealed it on Wednesday.

The airline had projected to part with its Airbus A330-300 planes as it received the new-generation Boeing 787 aircrafts, the much-anticipated flying machines that have been weighed down with expensive delays.

The chief executive officer of the carrier, Montie Brewer, said that with the prices of oil reaching above $130 per barrel, the company was thinking on replacing planes as a temporary fuel-saving option while it waited for the 787 aircrafts.

It has been revealed that around three thousand more flights could be flying out of Belfast City airport every year. This is sort of unbelievable thing at present, but this could going to be true in the coming future.

A letter from the airport reveals that planning deals now being drafted up seem set to increase the number of annual flights operating out from the hub to 48,000 from 45,000.

Although the new flight numbers also include private jets and charter planes which were not included in the old figure, it is still raising worries among residents who fear increased levels of noise. At the same time, passengers can expect to have more flights as presently, the aviation industry is facing flight crisis due to fuel price rise.

Northwest Airlines is to cut the number of available seats for bookings in the last quarter and also cut jobs as it is struggling with rising costs of fuel.

Northwest Airlines, which has settled to be taken over by Delta Air Lines, becomes the latest of the leading US airline companies to introduce reductions as they struggle with record high prices of oil that have doubled over the course of past 12 months.

The carrier said that it would reduce mainline capacity in the last quarter by 8.5 per cent to 9.5 per cent. This also included the cutbacks earlier announced in the month of April.