WASHINGTON, March 22 (UPI) -- More fuel-efficient planes are helping airlines to cope with higher fuel prices, the Wall Street Journal reported.
Airlines have replaced older gas-hungry planes with smaller more efficient models and the move is especially critical since airline fares have remained nearly flat for the past two years.
For example, Continental has used 25 percent less fuel this year and saved $265 million dollars after replacing its old, 1998 fleet, a Continental spokeswoman said.
Boeing and other airplane manufacturers have been outfitting planes with engines that get more mileage, helping U.S. airlines to modernize outdated fleets.
The travel decline that followed the terrorist attacks of Sept. 11, 2001, drove airlines to retire planes that needed more fuel or maintenance.
However, higher fuel prices will contribute to a loss of $2.3 billion this year for the U.S. airline industry, according to one analyst who previously forecast a loss of $500 million.
An increase of $1-per-barrel of crude oil means an extra $425 million estimated annual fuel costs for U.S. airlines, the Journal said.
