The cost of flying not only in South Africa but the rest of the world is set to go up due to the rising world oil prices. The price of oil is currently hovering around the $125 a barrel mark which is close to the record high of $128. South African Airways (SAA) have recently increased its fuel charges by R223 for domestic routes, R355 for regional routes and by a staggering R820.60 increase for its international routes.

This really comes as no surprise as there is not much the airlines can do besides increase their fares inline with the oil prices. Jet fuel is a huge cost for airlines and accounts to almost 30% of an airlines costs. It only makes sense for the airlines to increase air fares so that they can maintain profits. We recently saw the airline Nationwide shutdown and that just goes to show how tough the airline industry is at this moment in time. If airlines do not increase their fares then there could be many more Nationwide situations along the way.

In today’s global village, many businesses are relying on airline travel to conduct a lot of business. With increasing airfares, businesses are going to have to adjust their business models to counteract the increasing airfares.

Not too long ago when low cost airline, Mango was launched in South Africa, many people felt that air travel across South Africa was going to be affordable for the majority of South Africans. But it is now almost 2 years since the airlines launch and the cost of air fares on Mango are no longer affordable for many people. Gone are the days or low cost air travel.

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