Global airfares expected to fall in 2015 due to low cost jet fuel

Drop in cost of jet fuel to reflect in passenger ticket prices.


Global airfares expected to fall in 2015 due to low cost jet fuelAirfares are expected to fall by approximately 5% in 2015.

According to the latest global forecast from the International Air Transport Association (IATA), a fall in oil prices will allow airlines to cut their costs and pass the savings on to the consumer.

Airlines are expected to post a collective global net profit of US$25 billion in 2015, up 26% from the projected US$19.9bn earnings in 2014. And after adjusting for inflation, average return airfares (excluding taxes and surcharges) are expected to fall 5.1% next year, compared to 2014 levels.
Tony Tyler, IATA’s director general & CEO, welcomed the findings but urged caution. Read more

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