CHANGES IN THE PRICE OF FUEL FOR AIRCRAFT The cost of fuel is reported to be about 20 percent of the total operating cost for a major airline. Events in the Middle East caused jet fuel costs to nearly double from 2006 to 2009.

Required:

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

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

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