Are there still cheap flights to India in view of the large increase in oil prices?
Combined with the economic slowdown and lack of consumer confidence, it seems that the industry has difficult times. I suppose it was no surprise to most people that British Airways announced a large drop in earnings before taxes in the first quarter. The pre-tax benefit of BA for the period from April to June 2008 was reduced to £ 37 million compared to £ 298 million in the same period last year. In response to this, the company announced that it will have to increase rates and reduce capacity in its winter time.
Lufthansa has reported a 59% drop in its first half net profit, falling from 992 million euros last year to 402 million euros in the period from January to June of this year.
Staying in the dark, the economic airline Ryanair reported last Monday that its quarterly earnings had fallen by 85 percent. A company official stated that this could result in the first annual loss for the company since 1990.
We are likely to face higher prices in general, but that does not mean that you cannot find cheap flights to India yet. Demand for flights from the United Kingdom to India should remain high and airlines will want to compete where demand for their products is highest.
Many airlines operating from the Gulf States and the Asian continent, fly routes from the United Kingdom to India and are likely to be less affected by rising oil prices. In addition to this, India's economy is still booming and there has been a massive investment in the country's airports and infrastructure. Many new airports and airport extensions that offer greater capacity have been put online this year (2008), to meet high demand and increased air traffic. The airlines will compete for that extra and very lucrative business.
What this means for those of us who need to fly regularly to India for business, is that although we may face some rate increases, flight companies will have to compete very intensely for a portion of that business. They will have to carefully observe their pricing structures so as not to attract customers to the competition. You could also see higher levels of service and offers to tempt potential customers.
If you can be flexible with your travel dates or you can book (not necessarily for travel) in the short term, you can make great savings at this time. We are constantly attentive to these offers and publish them regularly on our website.
For UK residents looking for vacations abroad, European countries have become less attractive due to the relationship between GBP and Euro. Your money will continue to go far in India.
So, if you were considering taking a sabbatical, an extended period of fantastic exploration or just the vacations of your life in India, don't be discouraged by thinking about how the cost of air travel can affect your plans. Just do it, the sooner the better.