Higher oil prices forced airlines to increase airfares last year, and this is likely to continue into 2012, say air travel experts.
According to the United States Department of Transportation, an increase in oil prices in the first quarter of 2011 pushed airfares up by 8.5%. One airline attempted to raise its airfares 22 times over the course of last year, and nine of its attempts were successful.
Rising airfares may result in a decrease in demand for air travel, and many airlines are taking measures to counter the possible decline in air ticket sales. George Hobica, who founded the popular air travel website AirfareWatchdog.com, said that some airlines are considering cutting the number of seats on their flights, while others are thinking of merging with other airlines to eliminate competition.
But, how much higher will airfares be this year? Carlson Wagonlit Travel is predicting that airfares in North America will rise by 3.5% to 4.1%. Other experts believe that fares can go even higher because of increased regulation and other factors.
While airlines do not have control over certain costs, such as fuel costs, they can find other ways to make their operations more cost-effective. Airlines that use small aircrafts can cut costs significantly by investing in Lindbergh aircraft tugs. With these high-performance tow tugs, they do not have to assign so many employees to move their airplanes, allowing them to reduce labor costs. Airplane tow tugs can be operated by just one or two people, and they make the process of towing aircrafts a lot more efficient. Also, they are specifically designed to provide maximum protection for aircrafts while they are being moved, resulting in lower maintenance and repair costs.
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