26. December 2011 08:32
With Higher fuel prices, the Indonesian Airlines faced tough times during the beginning of year 2011, however the industry in optimistic of great times ahead in year 2012.
With $118.o5 per barrel, jet fuel prices saw its maximum hike since September 2008 in February 2011. This jet fuel price hike led to lesser profit margins for airlines and addition of fuel charges in air fares for passengers.
However due to stabilized jet fuel prices towards the fag end of 2011 and expansion of the Indonesian economy by 6.5% in its 3rd quarter, has assured airlines of a great 2012.
The airlines are expecting an overall 18% increase in air traffic in the year 2012. As per market experts Indonesian airline market will see double the growth compared to the Indonesian economy.