Cathay Pacific CEO Tony Tyler says when airlines last raised fares in 2008, most travelers kept on flying. But as Mideast upheavals send oil prices skyward and airlines hike fares again, the impact on the bottom line could be quite different.
The European Commission has accused some 13 airlines of collaborating to set cargo and security surcharges -- and to avoid paying commission on these surcharges to clients -- to reduce competition. Eleven of the airlines face a total of $1.1 billion in fines.
With air travel restrictions still crippling most of Europe, national governments and businesses are starting to bridle under the unprecedented shut-downs. Losses are now reaching more than $200 million a day. A U.K. pilots group says: "A number of airlines are now staring bankruptcy in the face."
