Money Matters - Simplified

Airline industry

Environment-wise: Thomson Airways to fly planes on cooking oil

Cooking oil is no more only a kitchen product. The common food staple has found its place in the airline industry as an unusual new fuel.

Airline profits expected to fall as fuel costs surge

Natural catastrophe in Japan, political unrest in the Middle East and North Africa and spiraling rise in oil prices were cited as the main reasons behind the International Air Transport Association (IATA) warning that airline industry profits will dip in 2011.

BA sees business travelers returning

London -- Airline industry analyst Tony Shepard at Charles Stanley said it was conceivable British Airways could post profits of more than $800 million this year.

With the recent resurgence in business travel, the airline posted a 17.2-percent gain in revenue per seat this year despite a drop-off of 7.3 percent in the volume of passengers, The Daily Telegraph reported Saturday.

Passenger numbers have dropped this year due to worker strikes and flights canceled while ash from Iceland's Eyjafjallajokull volcano reduced visibility in the early summer months.

Higher revenue per seat is indicative of BA reducing discounts and raising prices. It also implies the airline is selling more tickets for the more lucrative business sections on flights.