The vagaries in the international oil prices have created numerous downturns in the airline industry. The rise in oil prices has a direct impact on the major cost factor – fuel. The flag carrier of Singapore – Singapore Airlines (SIA) stated that services to Abu Dhabi and Athens will be suspended from October 26 due to weak demand.
SIA offers services three times a week to Abu Dhabi and flies to Athens two times a week while raising it to three times during June and September. Nevertheless, the passenger numbers travelling to Abu Dhabi and Athens has decreased. Further states the decline from carrying total passengers of 1.52 million in March to 1.50 million passengers last month. Find and compare the best cheap flights listings for more detail.
SIA also offered a statement that the suspensions are in accordance with the policy of matching the capacity to the current market demand. Hence the decline in demand and rise in oil prices leads to weak load factors and rise in fuel coasts respectively.
