BA ceo Willie Walsh has predicted the end of low cost fares because of rising oil prices.
He made his comments as BA posted a 45% rise in profits and announced it would be giving shareholder their first dividend since 2001. Despite the positive results, Walsh indicated rising oil prices would eventually hit the airline and described the results as a 'high point'. He also said many airlines would struggle to survive.
As to his own survival, it looks like Walsh is out of the woods - for the time being at least, partly due to his wise decision not to accept his bonus following the T5 fiasco.
So, what for the future of BA and the airline industry in general? Walsh says the way forward is consolidation. What do you think?
I'm keen to see what happens with Open Skies and whether this plus consolidation due to oil prices will see airlines hopping into bed with each other.