Asian travel industry still resilient amid high oil prices
AFP, Singapore
Asian travellers face costlier air tickets after oil breached 60 dollars a barrel, but the impact on demand should be limited amid rapid growth in no-frills travel, industry analysts said. Airlines' profits are expected to be hit the hardest as jet fuel costs account for an increasingly greater share of their expenses, ranging from 17-40 percent of total expenditures, aviation and tourism analysts told AFP. "A broader concern is what impact high oil prices have on the global economy. If oil prices are sustained at this level and begin to have an impact on the wider economy, it will affect travel demand," said Andrew Herdman, director-general of the Association of Asia Pacific Airlines.
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