As you can see the fuel costs are rising trough the roof! But what would happen with all those kerosene/gas powers jets? And what do u think all the aircraft manufacturers will do? Wil they build electric powerd planes sooner, or wil they fly on a other fuel?
please give you answers I really want to know what u guys think! :D
please dont go off-topic, I hope on some cool discussions!
Airlines will start to use balloons as their main fleet, because it is much cheaper. Also you can talk with @Balloonchaser about it. He knows much more than me 😉
Well as usual airlines can pass on the costs to consumers or absorb it themselves which quite a few do to remain competitive however something will need to be done and that’s why Airbus and Boeing have made Neo, and new fuel efficient aircraft so it’s up to the airlines now. There are more fuel efficient B787’s, A330’s, B737’s and A320 family aircraft. Plus the new A350 is very fuel efficient compared to its competition and there is even the A380 plus. I guess it’s cheaper to pay for the fuel rather than buy new aircraft.
Airlines are, along with most firms, profit maximisers. They’ll do all they can to maximise profit as profit allows them to buy shiny new planes. As fuel starts increasing in price I can imagine we’ll see a slow increase in ticket prices. The beauty of fuel is that it’s a common cost for everyone so all airlines will have to raise prices alas competition will stay the same. Low cost airlines will suffer most as their margins are so small. Bigger modem luxury airlines, eg Emirates, may be able to swallow costs and keep prices to low but if everyone is rising they may as well join them as they’ll still keep their market share due to their elasticity of demand created by their brand loyalty.
Fun fact is that KLM was safing money already in 2016. They knew that the fuel costs would rise! So like Ryanair would not have much money to spend on newer planes if the costs keep rising, is that what you mean?
Higher fares, fewer amenities, layoffs, and an increased emphasis in lighter, more fuel efficient aircraft. The margins in aviation are already incredibly slim, so the extra cost would have to be made up somewhere.
Do you know how you make a million dollars in aviation? Start with 10 million.