era of low airfares is over
Last Updated : GMT 08:43:32
Arab Today, arab today
Arab Today, arab today

Era of low airfares is over

Arab Today, arab today

Arab Today, arab today Era of low airfares is over

Dubai - Arabstoday

Spelling the end of the era of lower airfares, airlines worldwide will be forced to raise fares by an average of 5 per cent this year, succumbing to a 50 per cent hike in fuel prices over the past year, according to the chief economist at the aviation trade body International Air Transport Association (IATA). \"We are looking at a fare increase of at least 5 per cent, owing to a surge in oil prices. \"We have seen a five per cent increase in unit costs because of the rise in jet kerosene and that is with the [airline] industry having hedged 50 per cent of this year\'s fuel bills. \"Had they not done that, it would have been twice the impact. So we are going to see that five per cent reflected in airfares,\" Brian Pearce, IATA\'s chief economist, told Gulf News on the sidelines of the recent IATA annual general meeting in Singapore. He added that there would be some variation in the market but that is sort of a general guide for the airfare increase that IATA is looking at for this year, raising the possibility of a repeat of 2008 when fuel prices sent ticket prices spiralling. The Middle Eastern carriers such as Emirates and Etihad Airways, meanwhile, have been packing the summer period with discounts and offers in an attempt to attract customers. \"In weak market conditions, airlines try to stimulate demand by discounting and reducing fares. But it is a really difficult environment at present to be able to do so,\" Pearce said, adding that the industry has witnessed around 50 per cent rise in fuel costs this year, \"and fuel is an airline\'s main cost\". \"We have already seen some airfare increases this year by airlines,\" said Pearce, adding that even airlines that have 50 per cent of their fuel bills hedged are going to face the fare rise of \"at least 5 per cent\". Having increased airfares by about 15 per cent already this year, Emirates is anticipating a revision in airfares for 2011 too if the fuel price continues its climb, according to Emirates President Tim Clark. \"We may have to tend to our costs if oil prices go up to $150-$160 per barrel levels. And as long as the fuel stays at $100 per barrel plus, the whole industry is going to face real problems,\" he warned. \"Emirates is probably one of the most efficient airlines operating on all terms. And we are finding it difficult. So if we are finding it difficult, the industry will be finding it difficult.\" Fuel accounted for about 34 per cent of the airline\'s costs last year, according to Clark. Echoing Clark\'s view is Qantas chief Alan Joyce. He said the Australian carrier, having \"gone through now a number of fare increases and fuel surcharge increases\", could not rule out further price increases as the entire industry is dependent on jet fuel prices. \"The increases have still not recovered the additional fuel costs,\" he said. Supporting their views, IATA\'s Pearce said: \"With no sign of a significant decline in an oil price that is staying stubbornly above $100 a barrel, airlines are fighting to stay profitable and have pushed up ticket prices in order to recoup costs. They have had no choice but to hike fares.\" He added that the geo-political unrest in the Middle East and North Africa coupled with the recent shocks suffered by Japan, further add to the industry\'s woes. From / Gulf News

arabstoday
arabstoday

Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

era of low airfares is over era of low airfares is over

 



Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

era of low airfares is over era of low airfares is over

 



Arab Today, arab today
Arab Today, arab today Jordanian woman reveals her project

GMT 00:46 2017 Saturday ,11 November

Jordanian woman reveals her project
Arab Today, arab today Japanese regulators raid Airbnb

GMT 00:44 2017 Monday ,20 November

Japanese regulators raid Airbnb
Arab Today, arab today Keep kids busy at Thanksgiving gatherings

GMT 11:14 2017 Friday ,10 November

Keep kids busy at Thanksgiving gatherings
Arab Today, arab today UN warns of conflict in Gaza

GMT 08:39 2017 Tuesday ,21 November

UN warns of conflict in Gaza
Arab Today, arab today Missouri problem mirrors woes

GMT 06:46 2017 Tuesday ,21 November

Missouri problem mirrors woes
Arab Today, arab today
Arab Today, arab today
Arab Today, arab today Australian academic's book pulled

GMT 15:20 2017 Monday ,13 November

Australian academic's book pulled
Arab Today, arab today May under Brexit pressure at EU reform summit

GMT 02:14 2017 Saturday ,18 November

May under Brexit pressure at EU reform summit
Arab Today, arab today Delhi half-marathon to go ahead

GMT 03:51 2017 Saturday ,18 November

Delhi half-marathon to go ahead
Arab Today, arab today The history of solar eclipses

GMT 05:16 2017 Sunday ,20 August

The history of solar eclipses
Arab Today, arab today VW says will invest over 34bn euros

GMT 07:19 2017 Tuesday ,21 November

VW says will invest over 34bn euros
Arab Today, arab today Driverless, electric future just round

GMT 02:45 2017 Monday ,20 November

Driverless, electric future just round
Arab Today, arab today Fedra happy for “Between Two Worlds” success

GMT 09:23 2017 Saturday ,18 November

Fedra happy for “Between Two Worlds” success
Arab Today, arab today paObama climate envoy slams Trump's rejection

GMT 16:04 2017 Friday ,17 November

paObama climate envoy slams Trump's rejection

GMT 12:15 2017 Friday ,17 November

Mona Abdel Ghany increased artistic activities

GMT 11:15 2017 Thursday ,16 November

Angola oil boss sacked by father's protege

GMT 18:41 2017 Friday ,20 October

Designer Aql Faqih aspires to innovation

GMT 11:38 2017 Wednesday ,15 November

Unloved vultures fight for their survival

GMT 11:49 2017 Thursday ,17 August

Egyptian artist presents new collection of designs

GMT 02:28 2017 Saturday ,18 November

Anti-drug operation nets 4 tonnes

GMT 01:34 2017 Friday ,17 November

Banyan Tree Phuket Takes Festive Season

GMT 17:12 2017 Monday ,07 August

Al-Shawaifi reveals secrets of total solar eclipse

GMT 16:53 2017 Tuesday ,05 September

Youssra depended on colored foam
Arab Today, arab today
Arab Today, arab today
 
 Arab Today Facebook,arab today facebook  Arab Today Twitter,arab today twitter Arab Today Rss,arab today rss  Arab Today Youtube,arab today youtube  Arab Today Youtube,arab today youtube
arabstoday arabstoday arabstoday arabstoday
arabstoday arabstoday arabstoday
arabstoday
بناية النخيل - رأس النبع _ خلف السفارة الفرنسية _بيروت - لبنان
arabstoday, Arabstoday, Arabstoday