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Monday 07-Mar-2011

Airfares likely to rise by 25% this summer

Crude oil price is likely to remain above $100 a barrel

By  Traveltechie Bureau | Mumbai

Travellers must prepare themselves for a 25% hike in fares as airlines plan to increase fuel surcharge on tickets amid forecasts that crude oil price is likely to remain above $100 a barrel over the next four months.

“If oil prices increase, a rise in airfares is imminent because airlines can’t absorb fuel costs beyond a certain point,” said Industry experts. Economists have pointed out that given the political crisis in Libya and Egypt, Brent crude will hover well above $100/barrel leading to the increase in the airfares.