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FINANCIAL NEWS
UAE’s airfares to decline on falling oil prices
16 Dec 2014
(MENAFN) The UAE General Civil Aviation Authority said that the drop in oil prices is expected to result in lower airfares starting next year, which will have a positive effect on the country’s tourism sector, Gulf Business reported.
“It will be good for the airline sector. We are expecting a passenger growth of 10-12 per cent next year. It has been a good year for the aviation industry, both in terms of finances and operational capacity. There has been an increase in the number of flights. The growth has not stopped nor slowed down,” The Director General of the General Civil Aviation Authority said.
The drop in oil prices, which has started since June and resulted in oil reaching its five-year low due to weak demand and oversupply, has benefited the airline industry in procuring cheaper jet fuel for their planes, thus cutting their costs.
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