To ask the Secretary of State for Transport, what assessment he has made of the effect on the price of airline tickets of the falling price of oil.
Answered on
4 February 2016
The recent drop in crude oil price would not have the same effect in aviation as it does in, for example, petrol stations. It is common practice in aviation industry to purchase aviation fuel in advance by entering into long-term hedging contracts, which are designed to provide stability to the industry from short-term price fluctuations.
Should the current trend in the cost of oil prove long-term, it is likely to have an effect on ticket prices in the future in a highly competitive industry.
Answered by
Department for Transport