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According to Doyle, the company expects to shift a significant portion of the additional costs to passengers. He noted that this is especially possible in the premium and business segments, as well as on long-haul flights, where demand remains more stable.
“Our strong position in the premium segment and with corporate customers allows us to better manage cost growth,” Bloomberg quotes the British Airways chief as saying.
The carrier’s parent company, International Consolidated Airlines Group (IAG), earlier said it expects fuel costs to rise by about 2 billion euros ($2.3 billion) this year. The company plans to offset about 60% of these costs through revenue growth and optimization measures.
According to the source, airlines around the world are facing pressure on margins due to rising fuel prices. At the same time, demand for flights remains relatively stable, especially in the segments of business travel and long-haul routes.
According to British Airways management, business passengers are less sensitive to price increases, as their travel is often linked to work tasks and corporate budgets.
It should be noted that European carriers are using different strategies to adapt to the new conditions. For example, Air France-KLM is cutting costs and suspending hiring, while Lufthansa is focusing on revenue growth and improving operational efficiency.
