Oil price spike to push up airline fares in long-term, warns Willie Walsh

THE HIGHER price of oil will be reflected in increased airline fares, the boss of the international industry body warned yesterday.

“Oil is the single biggest element of an airline’s cost base. It is inevitable that ultimately the high oil prices will be passed through to consumers,” Willie Walsh, chief executive of the International Air Transport Association (IATA), told the BBC yesterday morning.

Walsh, who formerly ran British Airways owner IAG, also defended his decision at his former employer to lay off a number of staff at the beginning of the pandemic, which some have blamed for delays and disruption at airports.

The outspoken chief also laid into government over its decision not to provide industry-specific help during the rebound from the pandemic.

The IATA chief also said that Heathrow could have prepared better for the uptick in passenger demand after the easing of travel restrictions.
Over the weekend, British Airways announced a host of further flight cancellations over its summer and autumn schedule.