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Despite continuing efficiency improvements from the major aircraft manufacturers the expanding demand for global air travel has resulted in growing greenhouse gas (GHG) emissions. Currently the aviation sector including US domestic and global international travel make approximately 1.6 percent of global anthropogenic GHG emissions per annum. North America accounts for nearly 40 percent of the world s GHG emissions from aviation fuel use. 78

A second financial issue is that of hedging oil and fuel purchases which are usually second only to labor in its relative cost to the company. However with the current high fuel prices it has become the largest cost to an airline. Legacy airlines compared with new entrants have been hit harder by rising fuel prices partly due to the running of older less fuel efficient aircraft. 44 While hedging instruments can be expensive they can easily pay for themselves many times over in periods of increasing fuel costs such as in the 2000–2005 period.



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