This summer's high fuel prices are also affecting airlines. While big carriers like Alaska and Northwest Airlines have had summer passengers to Fairbanks booked for months, it's the small carriers to bush destinations that are feeling the pinch. Most Fairbanks carriers buy jet fuel locally from the Petro Star refinery in North Pole, where it comes right out of the pipeline. Aviation gas required by smaller planes is barged up from California. Like gasoline for cars, av gas and jet fuel have gone up.
Carriers can only absorb so much cost before they pass it on to their customers.
Larry's Flying Service employs 140 people and flies to 87 villages every day. So far, the company has absorbed the extra fuel costs instead of passing it on to passengers, but that may change very soon. Next door at Wright's Air Service, fares have gone up. Bob Bursil says he is not only dealing with high fuel prices, but double the cost of insurance premiums this year. He says the company is absorbing some of the increased costs, but has had to raise their rates as well.