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Age of cheap air travel 'over'
27 May 2008
Rising fuel costs has contributed to the end of cheap flights, according to the chief executive of British Airways.
A combination of soaring oil prices and the introduction of green taxes will mean that low-cost airlines will no longer be able to offer special deals for as little as £1 which could lead to their demise.
Mr Walsh said: 'My view is yes. I don't think the industry can absorb the significant increases [in fuel costs]. The industry has no future if it doesn't price in its costs. This is about survival.'
Holidaymakers could now be hit with extra charges for luggage handling and reservations as airlines look to recoup their losses in a bid to survive the changes.
'We are going to see more airlines fail and that will take capacity out. I think at some point demand will be affected by the increased prices,' said Mr Walsh.
The price of oil is set to reach £68 a barrel which is over double what it was a year ago, according to the Guardian.
Opodo cheap flights, hotels and car hire - let the journey begin!
A combination of soaring oil prices and the introduction of green taxes will mean that low-cost airlines will no longer be able to offer special deals for as little as £1 which could lead to their demise.
Mr Walsh said: 'My view is yes. I don't think the industry can absorb the significant increases [in fuel costs]. The industry has no future if it doesn't price in its costs. This is about survival.'
Holidaymakers could now be hit with extra charges for luggage handling and reservations as airlines look to recoup their losses in a bid to survive the changes.
'We are going to see more airlines fail and that will take capacity out. I think at some point demand will be affected by the increased prices,' said Mr Walsh.
The price of oil is set to reach £68 a barrel which is over double what it was a year ago, according to the Guardian.
Opodo cheap flights, hotels and car hire - let the journey begin!
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