American Airlines parent expects huge jump in 2008 fuel bill

By TERRY MAXON / The Dallas Morning News

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AMR Corp., parent of American Airlines Inc. and American Eagle Airlines Inc., said Monday it expects to spend $9.3 billion for fuel in 2008, up more than $1 billion from its estimate of two months ago.

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In a filing Monday with the Securities and Exchange Commission, AMR raised its estimates for what it expects to pay for jet fuel in 2008, from $2.65 a gallon projected in mid-January to its new best-guess of $2.98.

That 33-cent difference means a jump of over $1 billion, since AMR expects to buy 3.1 billion gallons of jet fuel in 2008.

For the first quarter, AMR increased its estimate on fuel expenditures by nine cents, from the January estimate of $2.64 to a revised projection of $2.73 a gallon. That will raise AMR’s estimated fuel bill by $68 million, to $2.1 billion, for the three months ending March 31.

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