IATA: Airlines Soon To Charge $40 For A Bag, $20 For a Meal

June 2, 2008 11:08 p.m. EST

Istanbul, Turkey (AHN) - Soaring aviation fuel will result to higher plane tickets, warns Giovanni Bisignani, director general of the International Air Transport Association.

Since air carriers have to pass on the added cost of operations to passengers, the era of budget flights could soon be over. As airlines struggle to recover from an expected $5.89 billion (3 billion pound) loss this year, ticket prices could jump by as much as $58.96 (30 GBP).

Bisignani said at the yearly IATA gathering in Istanbul, quoted by the U.K. Telegraph, "When you add $50 billion to the bill, somebody has to take care of the cost. Clearly the fare will have to reflect a cost structure that is different."

John McCulloch, managing partner of Oneworld Alliance, said it is likely that members of the alliance, which counts as members British Airways, Qantas, Iberia and Cathay Pacific, would follow American airlines that bill air passengers for food and even luggage for domestic flights.

McCulloch foresees Alliance members charging $39.31 (20 GBP for a bag and $19.66 (10 GBP) for a meal. "I think charging for meals will become standard practice. If the industry moves towards charging for apple juice in economy, I think the alliance will move in that direction," McCulloch said, quoted by the U.K. Telegraph.