Jet fuel is cheaper, but don't expect lower airfares anytime soon

DALLAS (AP) — Airlines will save billions this year thanks to cheaper jet fuel, but they aren't likely to share the bounty with passengers — not while so many flights are already full.

Instead, the airlines will use their windfall to pay down debt and reward shareholders.

Airline CEOs worry that oil prices could just as easily go higher. They hope consumers benefiting from cheaper gasoline will splurge on airline tickets. But the biggest reason airfares aren't falling: Planes are plenty full at current prices.

Fuel is the biggest single expense at most airlines, and spot prices for jet fuel have tumbled by half since mid-September. If prices stay around these levels, U.S. airlines could save $20 billion this year by some estimates.

The road to fuel savings at an airline isn't always as simple as it is for a driver at a gas station.

Airlines often buy contracts known as hedges to protect themselves against sudden upward swings in fuel prices. However, when the price of oil crashes, those contracts can lose a great deal of value. Analysts say the accounting losses will be more than offset by lower fuel prices.