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Construction : General1213 | May 2011 | Source : Construction Update

Fuel prices among challenges facing aviation industry

Fuel prices will continue to affect airlines prices

Experts from aviation industry believe that increasing fuel prices, which now account for more than 40 per cent of airline costs are likely to affect airlines prices in future.

Emirates Airline President Tim Clark said that if oil prices keep increasing, airlines operator will find it difficult to make profit. Emirates Airline has already hiked the price in terms of small fuel surcharges. Clark was speaking at an occasion - the Arabian Travel Market - 2011in Dubai. The International Air Transport Association (IATA) also stated that oil price hike is serious issue as prices are up from USD 86 per barrel as compared to last year.

ATM, Reed Travel Exhibitions Group Exhibition Director Mark Walsh praised Gulf Aviation Industry and said that despite the unfavorable conditions in terms of oil price hike, the region is growing at a faster speed.

Canada and Germany has recently, restricted Emirates landing rights in the counties. The leading airline company however, reported profits of USD 925 million for the first half of the 2010-2011 financial year. The organisation is planning to expand 152 aircraft in the next eight years.

 
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