BA chief warns ‘airlines will go bust’

The Guardian reports on the view of the British Airways Chief Executive that more airlines will go bankrupt.

More airlines will go bankrupt this year as rising fuel costs and weak consumer confidence ravage the industry, the chief executive of British Airways warned today.

Willie Walsh said carriers that struggled to make a profit during the recent sales boom will not survive the “worst ever” trading environment the industry has seen. The downturn has put 25 airlines out of business this year, including Luton-based business carrier Silverjet.

Rising fuel prices are creating a difficult business environment for airlines and as a result some may experience troubles and go out of business, as costs rise and revenues fall.