KLM Boss Predicts Some Airlines Could Go Bust
2008-06-10
A number of airlines could fold in coming months, the boss of one of the world’s biggest carrier has predicted.
KLM chief executive Peter Hartman fears rising fuel costs will account for companies that haven’t hedged against the ongoing increase in oil prices.
Dutch airline KLM hedges its own fuel contracts three to four years in advance.
But even so, it will still be spending at least £790,000 more on fuel this year than it did in 2007.
Mr Hartman expects some smaller airlines could be forced to merge with larger competitors.
He said: “"In the coming months there will be a shake out in many corners of the industry, including some low cost carriers.
“We don't know what the reaction of the consumer is going to be in the current climate.
“But one response could well be faster consolidation within the industry."
