Egypt turmoil might trigger rise in air fares
A sharp rise in the price of aviation fuel due to present political turmoil in Egypt and fears of a domino effect on other oil-producing countries in the region is likely to trigger a hike in air fares.
February 03, 2011 / 23:30 IST
A sharp rise in the price of aviation fuel due to present political turmoil in Egypt and fears of a domino effect on other oil-producing countries in the region is likely to trigger a hike in air fares.
"The recent sharp rise in fuel prices, at a time when load factors remain higher, will put further upward pressure on both fares and yields," an IATA report said.The Middle East political turmoil has pushed the oil prices close to USD 100 a barrel and jet fuel to USD 113 a barrel, considerably higher than the USD 91 per barrel average for 2009."The story this month is the sharp rise in oil prices.We predicted that 2011 would see a consecutive second year of profitability but industry profits fell by 40% to USD 9.1 billion. Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
