There were smaller increases in fares from Britain to short-haul destinations. Corporations are having a tougher time negotiating route deals than before, Davis added, and airlines are policing passenger commitments more rigorously. This shows that demand for travel is outstripping capacity in many markets - the ''balance of power'' shifting toward airlines and other travel suppliers. The rising cost of fuel will probably hit no-frills carriers hardest, forcing them to raise fares more in line with conventional airlines. That will reduce competition by lifting the pressure on conventional carriers to cut prices.
Major carriers have more leverage in buying fuel than the small, independent airlines.
EasyJet, for example, is operating more flights on existing routes before adding new ones. Therefore the 'real cost of travel' can be underestimated. History has taught us that when fuel prices fall, carriers are slow to drop the fuel surcharge. There are many stratagems to beat higher fares, apart from using frequent-flier miles for upgrades or decamping to the back of the plane. Or save 61 percent by flying via Amsterdam.