Changes in the Price of Fuel for Aircraft}

Fuel is reported to be about \(20 \%\) of the total operating cost for a major airline. Events in the Middle East caused jet fuel costs to nearly double between 2013 and 2016.

\section*{Required:}

1. If you were the CEO of a major airline, how would you suggest that the airline respond to the fuel price increase?

2. How would you expect the financial statements of major airlines to be affected by the fuel price increase and the actions that the airlines take in response?

\section*{Case