Cheap flights boom over, says BA chief as oil hits new high

Britain’s leading airline boss declared the era of cheap flights over yesterday as the price of oil hit a record high for the third day running.

Willie Walsh, the boss of British Airways, said the soaring cost of oil allied to global economic uncertainty would force airlines to raise fares in a scramble for survival that will see many of them go bust.


After a day of heavy trading oil rose to $135 a barrel as fears over supply shortages in the US sparked more buying. A year ago a barrel of oil cost just $65 but the price has risen relentlessly, driven by demand from developing countries and speculation on the world markets.

The soaring cost of fuel is also having a painful impact on the wider economy and brought renewed calls yesterday for the government to scrap rises in duty planned for the autumn as motorists face increasingly steep increases in the cost of filling their tanks.

Guardian