The chief executive officer of Virgin Atlantic, Mr. Steve Ridgway said in an interview with the Newsweek magazine that increased ticket prices are unavoidable.
Mr. Ridgway also said that his company might make use of its financial strength to expand and to buy struggling carriers in this tough situation in the sector.
He said: "We're all going to have to re-price. The world needs a viable air travel industry; global trade demands it. In terms of fares and fuel prices, none of us are at a place we could have recognised clearly two years ago.
We clearly need more fuel-efficient aircraft, but fuel surcharges are going to go up. Consider this: Taxes and fuel surcharges on a ticket from London to Los Angeles amount to about £300. But that only recovers 30 to 40 percent of our actual fuel costs".
Mr. Ridgway further said, "Potentially to do both. Europe's big carriers are in a strong position. It's the lesser carriers operating around them that are facing uncertainty.
America's airlines are going through a consolidation period, and there will likely be a similar process in Europe. You will definitely see a big change in the names and the numbers of airlines flying".
It is not surprising that the authorities related to airlines are thinking about the continuing price hike in fare because of the problems caused by fuel. For some time in future, they are predicting that the industry would face a very tough time.
