Willie Walsh, the chief executive of International Airlines Group (IAG) which owns British Airways has said that ticket prices may have to increase to offset the collapse in the pound.
He said: “In time, if sterling continues to be weak, we are looking at increases, not just in fares but in all goods.”
Some of this could just be scaremongering and of course we also do not know how exchange rates are going to go, stay where they currently are, drop further or increase. If anyone knew that answer we’d all be listening to them so lets wait and see. BA has been doing extremely well in the short-haul city break market of recent years so a combination of fare increases and poor exchange rates won’t be of much help to them.