Drivers all over the world have been rejoicing at the drop in oil prices which have plummeted to record lows in recent months. Getting a full gas tank no longer mean an empty wallet – but does that translate to your next plane ticket purchase?
All this buzz has led to many frequent travellers looking forward to reduced airline tickets as jet fuel prices halved in 2014 and fell another 17% in January alone. Unfortunately when it comes to airfare, it seems that for the most part the only parties profiting from the drop in oil prices will be the airlines. While Virgin and Qantas announced that their fares have lowered thanks to reduced fuel costs, no significant changes seemed to have occurred and it seems clear that many other airlines are not willing to make concessions either unless forced to.
Airlines spokespeople are insisting that the profits from reduced fuel prices aren't just lining their pockets; instead, airlines are using the extra money to cut down on debt and pay out to shareholders. Additionally, most worry that the unnaturally low price of oil will rebound, reducing anticipated profit in the future.
That being said, it's not difficult to imagine why airlines refuse to cut passenger costs: at current ticket prices, flights are still by and large full. With airlines running fewer and fewer flights, many see a majority of flights booked to nearly to capacity without offering passengers any incentives.
While cheaper oil prices means relief at the gas pump, be sure to put aside your savings to afford your next flight.
The United Nations World Tourism Organisation states tourist arri...Read More ›
Falling oil prices are being translated into cheaper petrol for d...Read More ›
As 2015 commences airlines have announced changes to fee and fare...Read More ›