ISLAMABAD: Airline operators are not ready to cut down fares even after decline in oil prices as politicians and consumer repeatedly demanded for fare reduction.
The global airline industry is expected to report a near USD $5 billion increase in profits this year to USD $25 billion, benefitting from cheaper fuel after crude oil prices dropped to 60 per cent since June last year.
According to Reuters, executives and analysts at the Airline Economic Conference in Dublin, said carriers would keep prices high as long as there was sufficient demand except when paring back fuel surcharges on long flights.
“Ticket prices are market driven not cost driven”, said former Chief Executive of Air Malta, Peter Davies adding that lowering fares was not necessarily the correct response to lower oil prices.
