Fuel costs hit airlines May 28th, 2008
Increasing oil prices and the knock on effect to aviation fuel has led Qantas, the Australian airline, to ground some of its planes. A review of its international flight routes is currently underway and announcements will be made next week on the extent of the cuts. Domestic routes are also likely to be affected but these will be a few months away. Increasing fuel costs and route cutting will inevitably impact on jobs and redundancies are also expected to be announced.
Only earlier this week American Airlines decided to delay its proposed expansion of routes to the China due to fuel costs. It has to be only a matter of time before UK carriers take the same, tough decision.
