The Majorcan charter airline sector, made up of Air Europa, Spanair, Futura, Iberworld, LTE and Air Nostrum and part of the Association of Spanish Airlines (AECA) claim that last year was their best 12 months on record. However, despite record passenger figures and an increase in turn-over, the success of the year 2000 has been diluted by the strength of the dollar and the high price of fuel, which reduced profit margins. According to AECA, all of the Palma-based airlines and Air Nostrum, which is based in Valencia, have enjoyed an increase in turn-over of 22 percent and passenger figures rose by 17 percent, but AECA president Felipe Navio, says that the increases are not mirrored in profit margins because of the high operating costs on the back of the Dollar and fuel. What is more, Navio stressed that unless the extra costs do not show signs of returning to normal, the costs of air line tickets will have to be increased. However, the increases will not be as sharp as initially thought.

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