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Uncharted territory - airlines in fight of their lives

“The airline industry, as it is constituted today, was not built to withstand oil prices at USD125 a barrel”, a weary American Airlines CEO, Gerard Arpey stated yesterday. By the end of the day, oil had risen to close to USD134 per barrel – to within USD1 of the level (USD135) that the airline with the best margins in the business, Ryanair, predicts it will no longer be profitable.

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