US airlines are forecast to lose a record $7.2 billion this year, in part because most use gas-guzzling elderly Boeing 767s as opposed to newer, more fuel-efficient planes common in European fleets.

American Airlines, Continental and Delta have all announced cutbacks due to rising fuel costs.

Consumers are also being squeezed. USA Today reports that summer airfares in the US are set to rise by as much as four times thanks to spiraling oil prices.

“The sector-wide downturn is pretty textbook,” says Theo Casey in Fleet Street Daily.

As a result of soaring fuel costs, aircraft demand forecasts are being revised… upwards. Yes, that’s the latest news. What has happened to all the green intentions that columnists are trying to inspire?

Crude Hits $133; Time Warner Spins Off Cable Unit; Boeing Jettisons 750 Workers; UBS Sells Assets to BlackRock; American Airlines’ Desperate Moves; Moody’s Big Mistake; DOJ to Sue OPEC?; BOE Holds on Inflation Fears.

Just one day after arch-rival Airbus SAS was forced to raise prices because of a weak dollar, The Boeing Co. (BA) said yesterday (Wednesday) that its first-quarter profits soared 38%, easily eclipsing Wall Street expectations.