Global News

Thursday December 30, 2010

Rising fuel costs are driving some of the hikes, but relatively brisk demand and diminished capacity are also giving carriers leverage that they have not had since before the start of the global economic slowdown.

With the national average for gas approaching 3.50$ per gallon, air lines are rising rates to offset their fuel bills.

These spikes could be the first of many as fuel costs continue to rise. “Oil prices have gone up from $80 a barrel to nearly $100,” said Michael Boyd an industry consultancy. As long as fuel prices continue to climb airlines will continue to raise their rates.