RISING OIL prices have forced Air Jamaica's fuel bill over budget, stirring fears that the national airline might be forced to pay an additional $1 billion for jet fuel this year.
According to a release from Air Jamaica yesterday, the airline has paid $260 million (US$4.2 million) more than budgeted for in the first three months of the year.
According to Christopher Zacca, chief executive officer at Air Jamaica, the increased spending has placed "a significant financial burden on the company, which has been trying to recover from the lingering effects of September 11, 2001 terrorist attacks on the United States and the war in Iraq."
Mr. Zacca said: "While our conservation programmes have been very successful, they are not enough, and Air Jamaica has been absorbing the massive increases in fuel prices."
He added: "The national airline is operating in an environment where competitive prices are critical, therefore the options are very limited."
Citing the volatility of fuel market conditions in recent months, the airline noted that the price of jet fuel has risen to a 13-year high of $1.16 per gallon. In November last year, Air Jamaica said, jet fuel was priced at 89 cents per gallon.
