http://www.gao.gov/products/GAO-14-331
Report: http://www.gao.gov/assets/670/666128.pdf
The aviation industry is vital to the U.S. economy. Passenger airlines directly generate billions of dollars in revenues each year and communities depend on passenger airlines to help connect them to the national transportation system. Between 2002 and 2013, jet fuel prices more than quadrupled from $0.72 to $2.98 per gallon and general aviation gasoline prices more than tripled from $1.29 to $3.93 per gallon in nominal terms.
This report discusses (1) the impact of increases in fuel prices from 2002 to 2013 on commercial passenger aviation, (2) the impact of increases in fuel prices from 2002 to 2012 on general aviation, and (3) the results of GAO's analysis of how future increases in fuel prices could impact the trust fund. GAO reviewed studies and other literature on the impact of fuel price increases. GAO conducted an analysis that included scenarios with increases in fuel prices up to 200 percent through 2024.
In several annual reports and press releases on the airline industry’s economic results, Airlines for America®, the trade association of major U.S. airlines, said that increases in fuel prices contributed to industry-wide annual losses in 2003 ($3.6 billion), 2004 ($9.1 billion), 2005 ($5.7 billion), and 2008 ($9.5 billion). ... Airline employment was also impacted by increasing fuel costs. From December 2002 through December 2013, airline employment fell from about 422,000 to about 325,000, or about 23 percent.
According to aviation associations and government officials, fuel price increases have contributed to a decline in general aviation activity (which is all non-scheduled air service), including the hours flown in general aviation aircraft. This decline in activity adversely affected general aviation airports and the services provided at these airports (such as reductions in flight training and refueling). For these activities and services, the price of fuel is not the only factor that contributed to this decline. According to associations that represent general aviation interests, a weak economy and other factors, such as increased security requirements, also contributed to the decline.