[ End of Cheap Flights Boom As Airlines Raise Fares in Line with Oil Prices ]

More than five million British passengers could be priced out of the budget holiday market as airlines raise their fares, bringing the era of cheap travel to an end.

Holidaymakers preparing for the traditional summer getaway this week may find that when they come to book their next break the fares have become unaffordable.

Ticket prices are expected to rise by 10 per cent this year and next as the cost of oil pushes up airline fuel bills.

The dramatic increase in the price of oil, which has doubled in the past year, will almost certainly lead to radical changes in the airline industry once this summer season ends. Carriers will raise fares, cut the number of flights they offer and some well-known names will go out of business.

The fare increases will be a particular shock to holidaymakers who are accustomed to cheap flights on low-cost carriers or budget airlines, such as Ryanair and easyJet.

The budget carrier concept, which was imported from the United States about 15 years ago, has altered the way people travel in Europe. Flights, costing from just £1, made weekend breaks to cities such as Barcelona or Dublin almost impulse purchases.

Traditional national, or legacy, carriers, have withered under the fierce competition from budget airlines, who have used their relentless cost-cutting to produce low prices. Passengers have been happy to forgo small luxuries such as meals, free drinks and assigned seats in return for cheap fares.

Budget flights combined with increased use of the internet to book hotels has encouraged many families to plan their own holidays rather than buy a package from tour operators.

The popularity of the budget carriers has allowed them to grow rapidly, in only a few years Ryanair has become the largest airline in Europe, carrying nearly twice as many passengers as British Airways. The rapidly rising price of oil, however, means that many airlines are losing money.

Source: timesonline.co.uk