Fuel costs to hit cost of no-frills fares

Fuel costs to hit cost of no-frills fares

RISING fuel costs are bringing ticket prices from low-cost carriers in line with traditional airlines, according to a report by American Express.

The American Express European Corporate Travel Index, which has recorded UK and European air fares for the three months to June this year, said no-frills airlines are now advertising frequency of flights and destinations to build market share instead of offering reduced fares as they did when they entered the industry 10 years’ ago.

The report predicts fare increase on all European air travel will rise by as much as 10% on some routes and says the full effect of rising fuel costs will not be felt until the end of the year when crude oil hits a 10-year high in the UK.

It added that low-cost airlines don’t have the leverage to get cheaper fuel deals.