With the price of fuel currently falling (and expected to continue according to FT today), could the airline industry see abit of a flux in it's luck over the next few months.
What I love is how people don't realise that when they pay for their flight and their fuel surcharge, that the price of fuel will change during that time between booking and flying. So, as they price falls, the airline are paying even less for the fuel than they would be at time of booking therefore they are making an even bigger profit from the fuel!
As the price of fuel falls (which is one of the main reasons why food, trnasport etc. prices are rising), will this mean we, the public are able to save money on our shopping? If so, surely this will make for some more disposible income? Which could mean more flying?
Anway, for anything like that to even happen, two things would need to occur:
1. Fuel would have to drop well below the $100 mark which I cannot see for some time
2. And what I really can't see - companies reducing prices that were risen because of the fuel, ie) my local petrol station who thinks they can charge me £1.32 for a litre of diesel!
