As I took a break before contemplating the commute home tonight, I came across this article in the Globe and Mail.
Air Canada pays $68,948 in fuel costs to get one of their efficient Boeing 777’s from Toronto to London’s Heathrow Airport. Even if the aircraft was completely full (349 seats), it would still cost $197.56 per person.
Even with fuel surcharges, the rising cost of oil is squeezing any profit out of the airline industry. Players like AC can probably weather this storm but you’ve got to wonder how the low cost, no frills charter companies are going to survive. Hell, even some of the debt and cost laden big US carriers likely won’t survive this for very long.
Air travel started off as an adventure, worked it’s way up to a rich man’s mode of travel and finally became an option for the masses to see the world. How long before we slide backwards and only the rich or business people in a hurry will be able to afford it?