Airlines counter criticism of profiteering from oil price drop

Singapore

GLOBAL airlines countered allegations of profiteering from low oil prices on Monday after renewed criticism that air fares have failed to come down in line with tumbling fuel costs.

The head of the International Air Transport Association (Iata) told an audience of airline chiefs and regulators in Singapore that industry profitability remained fragile despite a record US$36 billion in airline industry profits forecast for 2016. "Certainly lower oil prices have helped, but that impact has been delayed and diluted in many parts of the world due to forward hedges at higher than market rates, as well as the rise of the US dollar against local currencies," Iata director general Tony Tyler said on the eve of the Singapore Airshow.