“It has been a challenging year for consumers,” said Bezuidenhout, “and as the oil price continues to climb, a fuel price increase is becoming highly likely before the festive season. Should this occur, Mango will absorb these increases and not up fares due to fuel costs over the holiday period this year.” He added that the airline guarantees this until New Year's Day (1 January 2010).
The barrel price of crude oil now sits at near double its lowest floor price late last year. While still well under the crisis range fuel prices reached recently, currency fluctuations and the global financial crisis negatively affected airfares. “Low-cost airlines, however, are better placed to manage economic turbulence,” said Bezuidenhout. Traditionally, low-cost airlines are well placed to manage fuel price increases.
“Beyond a business model that dictates operational efficiencies, new-generation aircraft, such as the Boeing 737-800 aircraft Mango operates, allow for greater fuel efficiency, ultimately making air travel more affordable.”
“December holiday bookings are looking good,” said Bezuidenhout, noting that he expects a solid festive season. “While we may still be in the midst of a recession, South Africans are still travelling this year, though it is evident that holidays are on average slightly shorter than last year,” and, he said, that he expects low-cost airlines to perform well over the period.
