News | Airlines

SURGING OIL PRICE FUELS FLIGHTS DEBATE

2008-06-06

Do rising oil prices mean the end of cheap flights for travellers?

With the price of a barrel of crude hitting $135 - and predicted to soar to $200 - many onlookers are forecasting tough times ahead for budget airlines.

But Europe’s biggest low cost airline Ryanair is refusing to accept the fact that high oil prices will kill off the cheap flight sector.

Chief executive Michael O’Leary argues it will instead help his company attract more passengers from the likes of British Airways because of a series of surcharges imposed by traditional airlines to cover increased fuel costs.

Mr O’Leary said: “The era of low cost air travel is not over. Rather, the era of high fare air travel is over.”

Ticket prices with Ryanair will remain low, he said, and the airline is “committed to a policy of no fuel surcharges”.

Fares will rise by no more than five per cent this year, Mr O’Leary said.

The airline will cover rising fuel costs by increasing additional charges such as for baggage check-in.

And Ryanair is tightening its belt elsewhere. It has imposed pay freezes on staff and closed down a Dublin call centre. Some of its aircraft will be grounded during the winter.