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Fuel crisis abates - airlines quickly back on the expansion trail

Analysis

What a difference a month makes. The spectacular fall in the price of oil - now 24% off its Jul-08 peak - could re-write some of the capacity cuts airlines were preparing to make later this year. Falling oil prices will also lead to the removal soon of some fuel surcharges (Lufthansa Cargo has already moved to wind back its cargo surcharge), which could lessen the pain for travelers and support demand.

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