Home News Airlines could pass on oil prices to passengers. Why do tourists...

Airlines could pass on oil prices to passengers. Why do tourists have to change or even cancel their flights?

51
0

Speaking after JetBlue launched a takeover bid for the discount US carrier Spirit Airlines, Walsh also said he sees more opportunities for consolidation between US airlines.

“It simply came to our notice then. It is a proof that the financial power of the American airlines stands out from the rest of the world “, Walsh declared in a press briefing, informs News.ro.

According to him, consumers have benefited from major investments in new products.

According to the quoted source, IATA announced that the global passenger traffic recovered in February, as the impact of the Omicron variant was reduced outside Asia. However, the impact of the war in Ukraine has not yet been included in the monthly data.

Read:   The European Commission will examine the possibility of capping prices on gas imports from Russia

In February, passenger traffic stood at 54.5% of the levels recorded in the same month of 2019, up from 50.6% in January, but below the level of 55.1% recorded in December. The volume of freight traffic was 111.9%.

Airlines are facing rising oil prices, which accelerated after Russia’s invasion of Ukraine, a move Moscow describes as a “special military operation.”

“Rising oil prices have worsened an already projected outlook to include an industry-wide loss in 2022, although some airlines will make a profit as the world recovers unevenly,” Walsh said.

In the past, the general rule was that it would take six months for the increase in oil prices to be taken into account in calculating air fares, he added. But this inclusion could happen sooner due to the dramatic volatility of the market, as well as lower than usual levels of advance bookings.

Read:   Bank of England makes its first consecutive key interest rate increase in 2004 by 0.25 percentage points to 0.5%

According to Walsh, airlines and airports are taking steps to address staff shortages after rising demand, but some factors are beyond their control.

Thousands of tourists have been forced to change or cancel their trips as airlines and airports do not have enough staff to meet demand recovery as pandemic restrictions ease in Europe.

If you like this article, we look forward to joining the community of readers on our Facebook page, with a Like below:

Previous articleEuropean buyers increase coal purchases worldwide. What quantities did EU countries import?
Next articleThousands of freight cars stuck at Ukraine’s border with Poland. “Normally, only a small part of exports went by rail.”