Airlines reject criticism of fares after oil price drop
Global airlines countered allegations of profiteering from low oil prices after renewed criticism that air fares have failed to come down in line with falling fuel costs. IATA director general Tony Tyler said that industry profitability remained fragile despite US$36b in airline industry profits forecast for 2016. "Certainly lower oil prices have helped, but that impact has been delayed and diluted in many parts of the world due to forward hedges at higher than market rates, as well as the rise of the US dollar against local currencies," Tyler said. Politicians and consumer groups in the US and Europe have called on airlines to cut fares as Brent oil prices dropped from $114 in mid-2014 to around $30 today. "It is nonsense… It is simply not the case that anyone is profiteering," Tyler said. <br/>
https://portal.staralliance.com/cms/news/hot-topics/2016-02-16/general/airlines-reject-criticism-of-fares-after-oil-price-drop
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Airlines reject criticism of fares after oil price drop
Global airlines countered allegations of profiteering from low oil prices after renewed criticism that air fares have failed to come down in line with falling fuel costs. IATA director general Tony Tyler said that industry profitability remained fragile despite US$36b in airline industry profits forecast for 2016. "Certainly lower oil prices have helped, but that impact has been delayed and diluted in many parts of the world due to forward hedges at higher than market rates, as well as the rise of the US dollar against local currencies," Tyler said. Politicians and consumer groups in the US and Europe have called on airlines to cut fares as Brent oil prices dropped from $114 in mid-2014 to around $30 today. "It is nonsense… It is simply not the case that anyone is profiteering," Tyler said. <br/>
