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British Airways boss Willie Walsh declared the era of cheap flights over saying the soaring cost of oil allied to global economic uncertainty would force airlines to raise fares in a scramble for survival that will see many of them go bust.
After recent heavy trading oil rose to $135 a barrel as fears over supply shortages in the US sparked more buying. A year ago a barrel of oil cost just $65 but the price has risen relentlessly, driven by demand from developing countries and speculation on the world markets.
Shortly after the world's biggest carrier, American Airlines, announced huge cuts in routes and jobs because of the rising oil price, Mr Walsh said budget airlines would have to increase fares and add-on charges such as baggage check-in fees and that many unprofitable companies would simply go bust.
"The industry has no future if it does not price in its costs."
