Slowing economy in the UK = good news for budget airlines

The economy in the UK, much like in the US, has been slowing considerably. Some people–budget airlines for example–are actually pretty pleased about this. Their customers are turning to the cheap, no-frills airlines to keep their holidays on budget.

After it released strong passenger numbers, EasyJet said to The Guardian that the biggest danger facing the airline industry is the global oil price of $100+. Hedging, or betting on the future price of oil, is no longer an option because airlines are unwilling to peg their fuel costs at $100 a barrel. EasyJet has hedged 40% of its fuel needs until September at $75 a barrel. Then what? Things might not be so easy for EasyJet come this fall.