Image via Shutterstock

The lower cost of fuel will not necessarily trigger an immediate cut in the price of air fares, according to Travelzoo.

The main beneficiaries will be travellers who opt for a driving holiday either at home or on the continent.

Travelzoo UK managing director Joel Brandon-Bravo said: “Historically, low oil prices have not necessarily led to an immediate fall in flight prices.

“For the major airlines we would, however, expect some softening of the headline price in the medium term as the fuel surcharges will inevitably fall.

“This will probably take around six months because the airlines have hedged positions that protect them from volatility in the fuel market (either way) but they will now be working to unwind the hedges and take advantage of lower fuel costs.”

Speaking after chancellor George Osborne called on airlines to pass on the five year low cost of oil should be passed on to consumers, Brandon-Bravo added: “It is also typical of the government to point the finger of blame at the travel industry when up to half of a flight’s cost is often made up of taxation and other fees airlines are obliged to pay to airports and authorities.

“The British public will no doubt be surprised to hear that many airlines are operating at a less than 1% margin, even with falling fuel prices.

“Fuel costs make up around a third of the total cost for airlines such as British Airways, but this percentage can go up to over 50% for the low-cost airlines.

“At this stage the only immediate benefit will be for those who opt for a driving holiday – especially if they drive to Europe where the weak euro is also offering good savings on accommodation and food.” Travelzoo consumer research shows that most people are completely baffled as to where the money goes from their flight ticket.