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The consistent increases in oil prices that have plagued airlines in recent times could have a beneficial effect for consumers in the form of lower airfares, an expert has claimed.

Crude oil prices consistently smashed price records in the three months to March, hitting an all-time high of $120 (£61) per barrel this week.

James Fremantle, industry affairs manager at the Air Transport Users Council, explained that this rising cost for airlines could lead them to target efficiency improvements in other areas.

Carriers could cut airfares, he suggested, in order to fill as many seats on their aircraft as possible, ensuring they get the maximum value from the oil they are using.

'The downturn of the economy has hit all airlines and they are in for a few tough years,' Mr Fremantle said.

'The price of oil also makes a big difference, the number one difference actually. There's a possibility that airfares might come down because airlines will have to fill their planes.'

However, Mr Fremantle also said that airlines may not be able to attract as many passengers as they would like as the credit crunch causes consumers to cut back on their spending.

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