High oil prices hit business travel

Pain forecast for airlines and for business fliers

This is the winter of European airlines’ discontent. And it is getting worse. A pilots strike against Iberia will likely ground hundreds of flights on February 29 after affecting hundreds more last week. Ground workers at Frankfurt Airport are carrying out an extended strike. Others are being planned. Meanwhile, crude is nearing a nine-month high, and the outlook is grim for this coming spring and summer. As a consequence, airlines will raise fares disproportionately for those who are more likely to be able to afford it – business travellers. They will also drop unprofitable routes and launch counterintuitive fare sales. More airlines are predicted to go bankrupt in 2012, following Spanair, Malev and Air Australia.
Airlines are already raising ticket prices. In the US last week, Southwest Airlines, which has posted a profit for 39 consecutive years, increased its return fares by $10. One insider says that ticket pricing behaviour this year “eerily resembles Q1 2008.”
[pictured: Meridian Club Think Tank; courtesy WTM]


Check Also

Delta, airlines, United, American Airlines, pay, pilots, bonus, wage, profit share, usa, captains

Airline gives employees $1.1bn

Delta Airlines is being generous, and people working for its competitors are not too happy.

Iberia, London, Madrid, flight, Nicaragua, Managua, new, route, Central America, beach, adventure, trekking, surfing, Granada, tourism, travel

Iberia confirms new route to Nicaragua

Nicaragua is becoming a popular adventure and cultural tourist destination.

Gunnar Garfors, Norwegian, record, fly, round the world, airlines, flights, Sydney, Emirates, Iberia, Copa, Qantas, Dutch

Norwegian man sets round-the-world record

Passenger sets new Guinness World Record for travelling the world on scheduled flights.

Lufthansa beats Ryanair as Europe’s top airline

Lufthansa Group as a whole carried 130 million passengers in 2017

Niki, Austria, Lufthansa, IAG, buy, airline, Lauda, deal, bid

IAG buys Niki: what to watch for

Are IAG and Vueling the deal’s only winners?

European Union, EU, Brexit, Ryanair, pivot, cfo, Neil Sorahan, early deal, uk

Brexit uncertainty among travel businesses

European travel businesses slump on EU vote result