Cheaper oil prices do not equal cheaper flights

Those hoping that dipping oil prices would translate to cheaper airfares will be disappointed according to reports. Although the cheaper commodity makes jet fuel – a major expense for airlines – less costly, airline chiefs at the Singapore Airshow said the plunge in oil prices – which are down as much as 80% since mid-2014 – are taking a bite out of their premium traffic. Akbar Al Baker, chief executive of Qatar Airways, said the dip is reducing the business travel sector. “The companies are tightening their belts and there is generally an economic downturn,” Al Bakar told CNBC. Qatar Airways is based in the Middle East, which is heavily reliant on oil exports. A number of big companies have cut jobs in the wake of oil’s slump.