Abstract
Soaring fuel costs and impending EU Emissions measures spell danger for the industry. Load factors are also slipping, as a ‘golden period’ of fleet expansion threatens to cause a state of ‘over-capacity’.
To maintain the cheap ticket model, carriers are going to have to drastically raise their ancillary revenues (in-flight sales, charges and add-ons) and increasingly expand into accommodation and transfer services, in order to cope with the economic and legislative storms they are flying towards.
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