Oil Prices Cause Airfare To Shoot Up Further
Oil prices are pushing up airfare leaving business travel managers vexed. Experts too can't predict how much airfare will increase now with the turmoil in the Middle East and North Africa having raised fuel costs that represent about 25% of airline expenses.
Most industry experts like Tom Parsons of BestFares.com are regarding 2011 as the worst year in a decade in terms of finding airfare bargains. This is because airfare has just been rising since 1 January. Initially airfare rose due to the growing demand for air travel and the limited capacity of flights. Now with fuel becoming expensive the airfare is not going to drop anytime soon, even with all the consumer resistance.
Every dollar increase in the price of a barrel of oil is resulting in an additional cost of USD 1.6 billion to the global airline industry as per the International Air Transport Association (IATA).
Information | admin | 12 March 2011 |
