IATA sees low oil prices boosting air travel growth
The further retreat in oil prices at the start of the year could prolong a period of global air travel growth above historic averages, Brian Pearce, chief economist at IATA, said Friday. Air travel is growing 6% to 7%, already above the historic norm, with the potential that low oil prices could provide a boost into 2017, Pearce said. Lower fuel costs often lead to lower ticket prices, spurring demand to fly. Many European and Asian carriers have used financial instruments to lock in fuel costs early, so they won’t see the full benefit of lower oil prices for months or longer. That means the benefit from today’s low oil prices should flow through into next year, Pearce said. Oil prices slumped below US$30 a barrel at the start of the year, even though crude has rebounded in recent days. <br/>
https://portal.staralliance.com/cms/news/hot-topics/2016-02-01/general/iata-sees-low-oil-prices-boosting-air-travel-growth
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IATA sees low oil prices boosting air travel growth
The further retreat in oil prices at the start of the year could prolong a period of global air travel growth above historic averages, Brian Pearce, chief economist at IATA, said Friday. Air travel is growing 6% to 7%, already above the historic norm, with the potential that low oil prices could provide a boost into 2017, Pearce said. Lower fuel costs often lead to lower ticket prices, spurring demand to fly. Many European and Asian carriers have used financial instruments to lock in fuel costs early, so they won’t see the full benefit of lower oil prices for months or longer. That means the benefit from today’s low oil prices should flow through into next year, Pearce said. Oil prices slumped below US$30 a barrel at the start of the year, even though crude has rebounded in recent days. <br/>
