Mounting fuel costs could wipe out the US airlines industry’s profits this year, forcing consolidation in the sector as carriers seek to cut costs, according to Doug Parker, the chief executive of US Airways.

“Speaking for US Airways, fuel prices are going to be $800m or so higher than what they were in 2007,” Mr Parker told the Financial Times. “Everyone has that same equation. What we’re spending on oil this year, if all else stays equal, is more than enough to push them from a profit to a pretty big loss.”