THE cost of flying to and from Guernsey is set to rise significantly, airlines warned yesterday.
‘The current level of oil prices means that our fuel bill for 2008 will overrun by some 19%, from £2.6m. to £3.1m.,’ said Aurigny managing director Malcolm Hart, pictured.
‘Given that it is highly unlikely that prices will fall, it is inevitable that, like many airlines, our prices may have to rise this year to simply allow us to stand still. These are being reviewed.’
Flybe said that it had a hedging policy in place that would allow it to buy its future fuel needs in percentage slices across the year, helping to smooth market spikes. Chief commercial officer Mike Rutter said that even though some airlines were going to the wall, Flybe would continue to look for new routes.
But he said passengers would have to pay more if crude oil prices failed to drop.
‘If oil prices remain at these high levels over a long time, it will have an impact on the fares of all airlines. So in the medium term now is the time to take advantage of our current fares and book,’ he said.
A spokeswoman for Blue Islands said rising fuel costs had placed pressure on the whole industry.
‘Fuel does form a significant part of the cost of operating an aeroplane and continued price rises will inevitably result in higher ticket prices unless a more fuel-efficient solution is found,’ she said.
‘We are looking at our route structure and aircraft types to find a way of reducing the per-seat cost of fuel. There are pressing environmental as well as financial reasons for finding ways of reducing the amount of fuel that we burn.’
The spokeswoman said that it was not affected by pricing pressures as much as some airlines because it did not follow the low-cost model.
‘The true low-cost airlines will find it increasingly difficult to survive as they lose their key selling point,’ she said. ‘We have seen a significant increase in fuel costs since February but we have not, as yet, increased our fares.’
Article posted on 30th May, 2008 - 2.30pm
Loading ...
Most Commented: