Airlines were being fried in oil. The high price of aircraft fuel, especially the peaks of the past year, placed enormous strain on the sector. Recent price declines have given them relief, but the industry is still in trouble. Demand for seats and for air cargo is falling, and there is over-capacity in the sector. Airlines – and politicians – must act if the industry is to adapt successfully.

Oil is one of the industry’s biggest expenses. The sector suffered as the crude price rose, peaking at $147 a barrel in July. According to the industry body, the International Air Transport Association, 30 airlines closed this year.