May 27, 2008
Cheap flights are predicted to disappear
Current research has shown that airline bankruptcies are on the rise due to the troubled global economy. The credit crunch has led to an increase in oil prices which now means that the days of cheap holiday flights are now over. Industry experts have warned holidaymakers to be prepared for a steep increase in fare prices.
Companies such as Ryanair and EasyJet have built their business around being able to undercut the fares of other major airline corporations but analysts are now speculating as to whether these budget carriers can survive if the credit crisis continues.
In response to the instability in the oil industry marketplace, EasyJet have now stated that they will increase their fares but insist they will still remain competitive. A company spokesman said that no business can continue if it is unable to cover the cost of its operations.
However, British Airways appears to be well prepared to see out the current economic situation and has no qualms about passing on costs to passengers.