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Cloudy outlook for airlines and travellers
The age of cheap travel is over, according to a recent study from TripAdvisor that has revealed that over a fifth of British traveller’s plans will be affected by escalating fuel prices, as airlines raise prices to stay in the skies.
Luton-based Siverjet has been the latest casualty after rescue talks with investment firm Kingsplace collapsed, resulting in the grounding of its fleet and sacking of the 420-strong workforce.
At the beginning of June, BA increased its fuel surcharge for the 13th time in four years, with head of sales Dan Crawley stating that there is more cash flowing out of the airline industry than after the September 11 attacks. A long-haul BA return flight of more than nine hours will cost £218 more in June than in May of this year.
Travel analyst Martin Couzins at Travel Weekly sounds a more optimistic note, saying the industry needs a more realistic correction in prices after an untenable period of cheap travel. Average fares will have to rise, but if capacity is lowered, for example by retiring some older and more inefficient aircraft earlier (as easyJet and Ryanair will likely do) the overall situation will be mitigated.
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