Why Cheaper Jet Fuel Won't Mean Lower Fares

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DALLAS (AP) - Airlines will save billions this year thanks to cheaper jet fuel, but they aren't likely to share the bounty with passengers -- not while so many flights are already full.

Instead, the airlines are expected to use their windfall to pay down debt and reward shareholders.

Fuel is the biggest single expense at most airlines, and spot prices for jet fuel have tumbled by half since mid-September.

Delta Air Lines CEO Richard Anderson said Tuesday that his carrier expects to save $2 billion this year on fuel, even with hedging losses. He says Delta will pay down debt and reward shareholders by buying back company shares, which raises the value of the remaining stock.

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