The airline industry’s cost-reduction measures are limiting the effects of the oil price surge, says IATA. “Last year the industry would have been at break-even at $34 a barrel and this year we could be break-even at $50 a barrel,” says director general and chief executive Giovanni Bisignani. He notes that hedging dropped from 40%-50% in 2004 to about 20% this year.
Airlines still need some help to overcome increasing fuel costs, says Bisignani. “I would like to see governments more involved. I’m not asking for subsidies, but don’t treat the airline industry as a cash cow. It will not last for ever.”
Source: Flight International
