Cardiff Airport has played down fears that a predicted 40% rise in the cost of air fares would have a big impact on passenger numbers. The increase, caused by the record price of oil, threatens to put foreign holidays out of reach for thousands of families, according to research, by the investment bank Morgan Stanley. It suggests the rising cost of oil will lead to a downturn in the airline industry even worse than that after 9/11.
However Steve Hodgetts, Cardiff Airport's business development director, said although the airport is keeping a close watch on the situation, it is confident that its customers will continue to fly. He said: ‘A 40% air fare hike may be an average across the whole industry but it doesn't mean that it will be that figure on all airlines and all planes. It is not a simple equation.'
‘Fuel is not the only driver in price increases. It is only one of the costs involved in airfares, lots of other charges apply. Budget airlines make optional charges for check-in and bags, which customers can choose to pay or not.’
Mr Hodgetts said the majority of Cardiff Airport's passengers were travelling either on their main holiday or on business, both categories that give a high priority to air travel in annual budgets. He said: ‘I accept that there will be an impact on people who may choose to use air travel less. But these will be those who go for optional travel for shopping trips or a short break. These trips make up a smaller proportion of our customers. We are not hugely exposed to low-volume destinations in Eastern Europe that are most at risk.’
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