Airline industry under pricing pressures

Date: 20/10/2008 15:00

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The cost of fuel and the fall in customer demand is causing a lot of concern in the airline industry, it has been claimed.

Director of infrastructure and environment at the European Region Airline Association (ERA) Simon McNamara said that the demand for business travel was likely to currently be higher than the requirement of travelling for leisure.

Members of the ERA have recently reported the slowest period of growth experienced since the time following the terrorist incidents of September 11th.

Passenger growth was 3.7 between January and June this year - which is the lowest increase since 2001 - when that figure was 3.4 per cent.

The increase in the price of fuel is also causing problems in the industry, with ERA figures showing that the price of fuel has increased by 41 per cent in the second quarter of this year, when compared with the same period in 2007.

People travelling abroad should ensure their travel insurancepolicy covers them in the event of airline failure, after spate of recent airline collapses.

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