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Oman Air expects airline industry to suffer from increased oil prices

4-Mar-2011 12:22 PM

Oman Air warned that the global airline industry would face a tough situation due to the political uprisings in countries in the Middle East and North Africa, which has resulted in increased oil prices (The Nation, 04-Mar-2011). "It is very difficult to predict what the future of the airline sector will be. The soaring oil price this year [was caused by] conflicts, differing from the past when it came from demand," Abdulrazaq Alraisi, Oman Air CCO said. Oil prices will not return to the lows of the past and now it may be too late for airlines to hedge, as the cost of jet fuel has already reached USD120 per barrel, he said. Oman Air implemented a fuel surcharge on 01-Mar-2011.