Cheap oil won't mean cheaper flights

26 January 2015

airplane Now that the price of oil has gone down, prompting savings with our energy bills and at the petrol pumps, does that mean the price of holiday flights is going to fall? Well, according to what you've just read in our headline, it doesn't look like it.

This follows what Flybe have stated, saying that this drop in oil costs will have a "minimal impact" on the price of air travel. With that, shares in Flybe dropped accordingly by over 20%.

Saad Hammad, chief executive, who is trying to get the company making a profit again has been selling the company's peripheral assets and reworking their routes. He's certain that the airline is on the up (pardon the pun), saying: "Flybe's improvement in its core UK business continues to progress. Only a year into our three year transformation we now have a platform which enables us to compete in a tough environment where the consumer demands value."

"We have responded to that by keeping our fares low and launching new routes. Having removed nearly a $1bn of future liabilities over the course of this year in relation to the firm legacy order for additional Embraer E175 aircraft and ongoing losses of Flybe Finland, we are making solid progress towards finding a solution to our remaining legacy issue, Project Blackbird."

Project Blackbird sounds like a secret services strategy where they incite race riots or something. Either way, fact is, Flybe won't be dropping their prices and at the moment, it doesn't look like anyone else in the industry is going to bother either.

TOPICS:   Travel

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