The soaring oil price and collapsing credit pushed Eos Airlines and Nationwide Airlines to crumble this week and led to a spate of fare increases.
Transatlantic business-only carrier Eos Airlines, which flew from Stansted, ceased operating on Sunday and South African carrier Nationwide Airlines followed on Tuesday.
Nationwide flew from Gatwick to Johannesburg three times a week, a service it began in 2003. It had been in difficulty since November when its fleet was temporarily grounded by South African authorities for maintenance checks. In a statement, it said: “Our cash-flow has become critical.”
British Airways increased its fuel surcharge on fares by up to £30 from today to cover the rising fuel price.
Its surcharge on flights of more than nine hours will rise by £30 to £158 return, that on other long-haul flights by £20 to £126 and the surcharge on short-haul return flights by £6 to £26. All the surcharges are included in BA’s fares, as required by the Office of Fair Trading.
Qantas also raised its fares from the UK by 3% and Ryanair increased its baggage and airport check-in charges in a move widely seen as an attempt to cope with the oil price despite the airline’s denial.
Airline association IATA expressed grave concern, with a spokesman saying: “The fuel price is having a huge impact. There has been a step change in demand.”
Demand in the UK appears so far to have been unaffected by the deteriorating economic situation, but major US carriers are cutting up to 10% of their domestic networks.
Latest IATA figures suggest fuel accounts for 30% of airline costs. However, they relate to when oil was priced at $86 a barrel and it is now $120.
Business-only carrier Silverjet answered queries about its immediate future by announcing a deal for $25 million of extra funds from an unnamed investor in the United Arab Emirates.
The investor will take a 28% stake in the airline, pending shareholder and regulatory approval.
This is a community-moderated forum.
All post are the individual views of the respective commenter and are not the expressed views of Travel Weekly.
By posting your comments you agree to accept our Terms & Conditions.