Airlines Lose Money; Guess Who’ll Pay More
Airlines Lose Money. Who’ll Pay More?
For the first half of the year, airlines around the world have lost about £3.7 billion. It’s due to the economic downturn, the recession or whatever you want to call it. They have cut capacity, mothballed planes, deferred new ones, reduced staff and are looking at any way they can for reducing money. British Airways is even considering taking selected advertising on the website.
These are the bad times we are told. But for whom? Surely only the airlines. Due to over manning in the older airlines and quaint government ideas that every country has to have its own airline we have too many airlines. Privately run airlines are sometimes run with the same financial acumen that football clubs use. But for passengers now is the time to fly. Cheaper prices even allowing for fuel surcharges and government taxes described as environmental surcharges still make it reasonably cheap.
But when things pick up and more people fly again, prices will rise as airlines try to build profits. So the passenger will be hit again making it expensive to fly. And the airlines will keep all the money making ideas that they have developed like paying for drinks, food, bags and aisle seats. The passenger could be worse off.
So fly or book now. Some airlines are quoting rates until June 2010. I’m taking advantage of it because something tells me the recession ending is going to mean our wallets get hit even more.
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