Tuesday, 10 May 2011

Airlines without premium class travel more affected by fuel price change

It has been an interesting day of results for those involved in the travel sector. It has been a poor day for Easyjet and the Scandinavian airline SAS as they have been affected by falling passenger numbers and rising fuel prices.

Long haul airlines have fared better due to the return of passengers to the premium cabins and the increase of traveler numbers in the Middle East. Emirates is indicative of this and their profits have risen by 52% to $1.5bn in the past 12 months.

BAA have also seen an increase in the number of business travelers with a large proportion traveling to China and India. The airlines without business and first class cabins are forced to take a bigger hit on external factors such as fuel prices while the premium airlines are able to use the first and business class cabins as a cushion against rising fuel prices. Let's face it, no one can eat and drink £3,000 of fine wine and lobster in 8 hours!

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