Airfares to jump as a result of rising oil price: Airline executives
The rise in the oil price is putting the squeeze on airline costs and is likely to lead to a rise in air fares, industry executives said Monday. The oil price, which typically accounts for around 30% of an airline's costs, has risen 52% since June 2017 to around US$68 a barrel. IATA CE Alexandre de Juniac said he believed there was a consensus among airlines that an oil price of around $65 to $70 remained "acceptable". "It is not so much a competitive differentiator for an airline," he said. "It puts pressure on costs and it is more a fare inflation trigger." However, airlines said the higher oil price was proving financially damaging because fare increases had so far failed to keep pace with the oil price rise. <br/>
https://portal.staralliance.com/imagelibrary/news/hot-topics/2018-02-06/general/airfares-to-jump-as-a-result-of-rising-oil-price-airline-executives
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Airfares to jump as a result of rising oil price: Airline executives
The rise in the oil price is putting the squeeze on airline costs and is likely to lead to a rise in air fares, industry executives said Monday. The oil price, which typically accounts for around 30% of an airline's costs, has risen 52% since June 2017 to around US$68 a barrel. IATA CE Alexandre de Juniac said he believed there was a consensus among airlines that an oil price of around $65 to $70 remained "acceptable". "It is not so much a competitive differentiator for an airline," he said. "It puts pressure on costs and it is more a fare inflation trigger." However, airlines said the higher oil price was proving financially damaging because fare increases had so far failed to keep pace with the oil price rise. <br/>
