EU national airlines will not make any money on their short-haul European operations this year despite heavy promotions of reduced fares and a campaign to cut costs. Most of these so-called flag carriers have reluctantly decided to pass on soaring fuel costs to short-haul passengers in the form of a surcharge on tickets. At the same time, they are encountering strong competition on most European routes from the budget carriers, who have pledged not to levy surcharges. Budget airlines have dramati- cally raised their short-haul market share, taking advantage of the financial difficulties at flag carriers. Short-haul accounts for almost one-fourth of the national carriers business while the remainder is derived from long-haul flights, demand for which has experienced a strong recovery.
Question: Losses on short-haul flights are adding to the financial difficulties experienced by national airlines.
Options:
A. true, B. false, C. uncertain
Answer: B