Report by Jane Archer
AIRLINES are passing big air fare increases on to operators
for next summer because of the rising cost of fuel and also the strength of the
dollar.
Sunvil managing director Noel Josephides said rates to
Greece for next year are about £8-£12 higher compared to average increases of
£2 in past years.
Avro distribution director John Fitz-Gerald said fares for
next summer are up 6%-7% on this year, adding about £7 to a flight to Spain.
“This is not good news because the market is very price sensitive
and we will have to pass on all the increases to clients,” said Fitz-Gerald.
He said the reduction in air passenger duty from £10 to £5
in Europe from April will lessen the impact of the rising fuel price.
But then he added: “Fares to Florida and Australia have been
very good and they could be hit badly.”