Staff costs in focus while oil price is low

Airlines prepared for rising staff costs – and oil-price rebound
Airlines are likely to benefit from low oil prices for at least the duration of 2016, but they must be prepared for a fast rebound and rising staff costs, the news agency Reuters reports.
Industry leaders warn that although oil prices may fall even further, prices could bounce back quickly and unpredictably.
For now, non-fuel costs at airlines are in the spotlight, as they were for example at the recent Airline Economics conference in Ireland, highlighting the difference between legacy and low-cost airlines.
Staffing costs are likely to be the biggest source of costs at IAG in 2016, forcing it to look for solutions – such as a decision to move some office jobs to Krakow in Poland. By contrast, only 8% of costs at the eastern European low-cost carrier Wizz Air are staff costs.
“We compete with the likes of Ryanair, the most aggressive low-cost airline in Europe. We’ve got to have a cost base that enables us to compete in an effective manner,” IAG CEO Willie Walsh said.
Reuters

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