FuelClub Discount

Airline executives forecast bankruptcies, job cuts and increased ticket prices yesterday as Air France-KLM plunged the industry into further gloom with a warning that its profits would fall by a third under the weight of rising fuel costs.

Shares in the Franco-Dutch carrier were marked down 10 per cent to ?16.74 amid fears that its fuel bill would be ?5.7 billion (?4.5 billion) this year, up from ?4.6 billion in 2007.

The warning from the world’s biggest airline by revenue provoked fresh turbulence in a sector already unsettled by Wednesday’s announcement from American Airlines that it would charge passengers to check in luggage in an effort to generate additional revenue. With Qantas, the Australian flag carrier, putting up the cost of international flights by 4 per cent and Japan Airlines also set to raise its fuel surcharge, executives predicted fewer passengers and a bleak outlook for the industry.

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Holyrood Environment Secretary Richard Lochhead said the fleet was facing having to fork out tens of millions of pounds extra because of the issue.

He will use a meeting of the Agriculture and Fisheries Council in Brussels to press the need for more assistance for the industry.

The meeting will also be attended by UK Environment Secretary Hilary Benn.

Mr Lochhead said ministers had to ensure the “renewed confidence” in the industry, which followed a period of quota cuts and the scrapping of fishing boats to cut back the fleet, was not undermined.
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The European Union (EU) antitrust regulator launched an in-depth probe on Wednesday into Norwegian oil company Statoil Hydro’s bid for Jet petrol stations in Scandinavia.

“The Commission’s initial market investigation has indicated that the proposed merger raises serious doubts as to its compatibility with the Single Market as it appears that it could limit competition on the motor fuel retail markets in Sweden and Norway,” the European Commission said in a statement.

“Rising oil prices make it even more important that consumers continue to benefit from competition at retail level,” said EU Competition Commissioner Neelie Kroes.
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