The fluctuations in oil prices continue to have repercussions in far corners of the economy. Here's another one: Airlines are spending a lot less on jet fuel than they did a year ago. Southwest Airlines reports that it spent an average of $2 per gallon of jet fuel in the first quarter of 2015 - down from $3.08 per gallon in the first quarter of 2014.
What's happening to all those savings? They're going to shareholders. Southwest announced last week it was buying back $1.5 billion of its own stock and increasing its dividend. Delta Air Lines also announced it was planning to buy back a whopping $5 billion in stock.
Altogether, the airlines are projected to reap a $7 billion windfall in lower fuel costs over the first six months of this year. Credit Suisse expects about 70 percent of that to find its way back to shareholders.
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