Airlines 'in for a Tough Few Years'

Airlines may be in for a tough few years, as they feel the effects of the recent economic downturn, according to one industry expert.

The Air Transport Users Council (AUC) made the claim, adding that low-cost carriers may benefit by picking up some business class traffic looking for a cheaper alternative.

James Fremantle, industry affairs manager at the AUC, said: "The downturn of the economy has hit all airlines and they are in for a few tough years.

"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."

He added that low-cost airlines will "have their own problems", as domestic passengers may decide to cut back on leisure trips due to problems in the economy.

According to British Airways, passenger capacity in March 2008 was 1.6 per cent less than what it was in the same month in 2007, measured in available seat kilometres.

Travel Industry News posted on 30/04/2008 13:55:31