FlySafair has cautioned that higher fares may be on the horizon for all airlines in the near future due to the recent rise in the oil price.
‘We’re all aware of how the oil price has shot up recently due to international developments, and this obviously has a massive impact on the price of jet fuel, which accounts for almost 40% of our cost base,’ said Kirby Gordon, Chief Marketing Officer at the carrier.
‘Airlines, especially low-cost carriers who operate on high-frequency routes like us, are generally considered to be what economists call price-takers, which means that the fares we can achieve are set by market forces of supply and demand. It’s not really within our power to simply pass costs on to consumers, but the viability threshold of our business does rise and so there comes a price point where it’s no longer economically viable,’ he added.
Gordon also commented on the chaos that ensued over the weekend after the South African Civil Aviation Authority (SACAA) grounded Comair indefinitely.
READ: Kulula and British Airways grounded by Aviation Authority
‘Local low-cost carrier FlySafair is one of the few airlines left to accommodate those stranded by last-minute cancellations,’ he said. ‘This weekend’s groundings meant that almost 4 in every 10 passengers due to travel were left stranded.’
Gordon said that not a single FlySafair seat was left empty on Sunday 13 March.
Picture: Getaway gallery
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