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Mixed Fortunes in Aviation

Emirates are expanding fast and ordering A380’s to meet demand, the Middle East is becoming a powerful hub for global aviation. In the year to March Emirates carried 31.4 million passengers, a growth of 14.5% over the previous year and meaning that they carried more passengers than BA, although BA has now been merged with Iberia.

EasyJet has been squeezed by increases in APD and fuel price rises; it has not been possible to raise prices as demand is weak. EasyJet’s losses have nearly doubled as revenue per seat has fallen by 2.1% in large part due to the increase of ?1 in APD in the autumn to ?12 per short haul flight. Fuel now accounts for 25% of the cost base.  Oil prices rises bankrupted dozens of airline in 2008. Jet fuel reached $141 per barrel at the  end of Aril 2011, an increase of more than 45% on the year.  EasyJety will reduce the number of flights it offers over the winter.

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