Strong euro helping European airlines cope better than U.S. counterparts with oil prices

Troubled U.S. airline companies, already financially shaken by fierce competition from low-cost carriers and steep labour costs, are now facing more turbulence from soaring fuel costs, which even their European rivals are finding less rocky. The spectacular spike in the price of jet fuel, up 46% in a year, aggravated the plight of Delta Air Lines and Northwest Airlines, two U.S. carriers that filed for Chapter 11 bankruptcy protection last week. Meanwhile. European airlines like Air France- KLM reported fuel costs soared 32% in the first quarter of this year to US$980-million. But the Europeans are managing the jolt better due to a strong euro, which has helped to ease the impact of fuel costs, priced in dollars.