Subscribe Now

travelers today

Home » Video

Free In-Flight Wine May Soon Be History, Blame Fuel Costs

Travelers Today       By    Christie Abagon

Updated: Dec 13, 2016 06:10 AM EST

Text Size: A A A

Enjoy it while it lasts. Some of Asia's marquee airlines that provide free alcohol and in-flight entertainment may soon have to stop the habit. The reason? Fuel costs.

Singapore Airlines famously rolled out the on-board giveaways in the 1970s, but due to Organisation of Petroleum Exporting Countries' (OPEC) production cuts, these will be unsustainable to some carriers.

The organization agreed to reduce collective production to 32.5 million barrels a day and an additional 600,000 barrels a day of cuts from non-OPEC suppliers. This is OPEC's first production cut in eight years, The Sydney Morning Herald reported.

Asian carriers like Cathay Pacific and Singapore Air are already battling excess capacity and declining premium traffic, making them vulnerable to rising fuel costs. Analysts say that OPEC's cut in production will really take a toll especially on budget airlines like AirAsia and Jetstar, which is owned by Qantas, to the point that they may be forced to give up extras, like free wine.

Fuel is typically an airlines biggest expense. This year's 30 percent fuel price increase will definitely threaten the global aviation energy. Cathay, Asia's biggest international airline, is conducting a "critical review" of its business after facing an 82 percent drop in revenues for the first six months of 2015. According to Chicago Tribune, just last week, Cathay said that 2017 will be "challenging."

Analysts say airlines may soon start charging fees for extra services. In 2009, chief executive officer of European low-cost airline Ryanair Holdings, even suggested charging customers to use the toilet.

Oil prices went up from $US100 a barrel in mid-2014 to about $US26 in January this year. Airlines may find aircrafts like Boeing's 787 Dreamliner and Airbus's A350 to be more appealing because they have twin-engine aircraft burn less fuel than four-engined models such as the Boeing 747 and the Airbus A380.

See Now: The U.S. had the highest number of Most Wanted properties, dominating the Hotels.com Loved By Guests Awards 2018

Tags
cathay pacific, Singapore Airlines, alcohol, wine, gas, Airplane
© 2023 Traverlers Today, All rights reserved. Do not reproduce without permission.
Join Our Conversation

Subscribe to our newsletter

Receive the latest travel news, reviews, and more..

Most Popular

6 Tips For Traveling With Young Children

6 Tips For Traveling With Young Children

Planning for a trip takes some time, even if it's just you g

How Traveling Can Make You Happy

How Traveling Can Make You Happy

If you have never traveled before but are thinking of doing so then

Scottish Islands: The Best Places to Reside!

Scottish Islands: The Best Places to Reside!

So there are a few islands that can be found off the Sco

How to Plan a Multi-Destination Honeymoon During COVID

How to Plan a Multi-Destination Honeymoon During COVID

You need to know how to plan appropriately and

7 Tips for Amazing Campus Visits

7 Tips for Amazing Campus Visits

A campus visit's significance could not be overstated. After all, fo

4 Tips For Curating The Perfect Gallery Wall

4 Tips For Curating The Perfect Gallery Wall

Having a gallery wall brings plenty of benefits to your

Water Travel Options That Don’t Involve a Cruise

Water Travel Options That Don’t Involve a Cruise

There is something equally relaxing and invigorati

Photo by Erik Odiin on Unsplash

Things That Will Help Cost-Conscious Vacationers Save Money

There are several ways you can significan

Photo by Mikhail Nilov from Pexels

How to Make Vet Visits Affordable in 2022

If the situation is minor, you might be lucky and get away

Photo by Tim Samuel from Pexels

Know Your Florida Driving Rules

There is so much to do in the region, but we want to focus on some of

Photo by Ging Ang from Pexels

Holidaying in your own Country: Try these Fun Trips!

Many countries are opening their borders, but if

Photo by Jessica Lewis Creative from Pexels

The Best Tech Tools for Expats

Here’s a quick look at most versatile tech tools for expats on the m

Photo by Tobi from Pexels

How to Turn a Road Trip Into A Luxury Adventure

But a road trip doesn’t have to mean living on the

Australian Citizenship Test: Everything You Need to Know

Australian Citizenship Test: Everything You Need to Know

Do you want to become a citizen of Australia

Hair transplant Istanbul: Why is it so popular?

Hair Transplant Istanbul: Why is it so Popular?

Getting a hair transplant in Istanbul is affordable i

What’s Going on with Rental Cars Right Now?

What’s Going on with Rental Cars Right Now?

They are incredibly expensive, and they’re also in sh

Role of Professional companies in International Trade

Role of Professional companies in International Trade

International trade holds great importance in a

The 5 Best Wines from Germany

The 5 Best Wines from Germany

Riesling is Germany’s best-known wine, but the country makes other fi

Here's Why You Should Go Camping On Weekends

Here's Why You Should Go Camping On Weekends

There is nothing like the great outdoors –– nature

The Best Tote Bags To Travel With in 2022

The Best Tote Bags To Travel With in 2022

Who knew you could pack your entire life away into one litt

7 Captivating Attractions for Kids in San Diego

7 Captivating Attractions for Kids in San Diego

San Diego is a magnificent place, and it would not be

travelers today

© 2023 TRAVELERS TODAY All rights reserved.

Subscribe to our newsletter
Real Time Analytics