Friday, 6 May 2011

Airlines Concerned That Fuel Prices Could Ruin Industry

Willie Walsh, The Chief Executive of International Airlines Group, has warned that the increasing price of oil remains 'the biggest challenge facing the industry'. His concerns have been voiced at a time where the price of crude oil has increased from $90 to $120 per barrel.

Since the merger between BA and Iberia in January, IAG has announced that it has more than halved operating losses to $148m in the three months to the end of March. This has been achieved at a time when the group's fuel bill Jumped by €266m to 1.13bn in addition to raising its fares,increases in its fuel surchage and the demand for business travel returning.

Are these figures due to cost efficiences within BA or are they simply passing on the cost to flyers?

If I had to hazard a guess..

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