SPANISH Airline Association (AECA) President, Felipe Navio, confirmed yesterday that following continuing increases in the cost of fuel, airlines have been obliged to put up their fares.
Navio said that in the aviation sector, the amount that has to be paid for aviation fuel represents about 15 to 20 percent of the day-to-day costs of any airline.
He highlighted the fact that fuel is a very substantial overhead in aviation, and added that although companies have been holding out over the last few weeks, it has become clear that the price of a barrel of oil is not going to decrease. Thus the decision has been made to pass part of the cost of this increase onto passengers..
The airline company president pointed out that with respect to the future, the hopes of AECA are that the price of fuel settles at a more reasonable level. We will have to keep a watch on a daily basis on how prices are materialising..
Navio said that airlines throughout the world would have no option but to increase their fares because of fuel costs.
Navio claimed that when the price of a barrel of oil starts to fall, airlines will then be able to reassess the amounts they are charging passengers and bring down their fares accordingly.