Falling Flight

Sri Dharanee Performance Arts Theatre

Fuel surcharges by airlines may finally be putting a drag on demand, as passenger numbers and cargo volumes slow in August on the back of high oil prices. Fuel surcharges by airlines may finally be putting a drag on demand, as passenger numbers and cargo volumes slow in August on the back of high oil prices.

“While many carriers have been more successful at imposing fuel surcharges, we may be nearing the limit and seeing a trade-off with demand,” Giovanni Bisignani, Director General of the International Air Transport Association (IATA) said last week.

Though international passenger traffic grew 8.3 percent and freight 3.6 percent in the first eight months this year, year on year comparisons show slower growth.

“The story for August was weaker growth for passenger and a continuation of subdued growth for cargo traffic. While July recorded 8.5 percent growth in passenger traffic, August saw that drop to 6.1 percent,” IATA said in a statement.

This is the first indication of a slowing in passenger demand. It appears that consumer confidence is being damaged by the rise in oil and gasoline prices,” Bisignani said.

Global airlines may have