IATA Chief: Cheaper Airline Tickets Due to Lower Oil Prices

The aviation industry is benefiting from lower oil prices, which reduce the cost of jet fuel. As a result, airlines have room to lower ticket prices, says Willie Walsh, director of IATA, the international trade association for airlines.

Jet fuel is typically the largest expense for airlines, Walsh told Bloomberg. 'There is almost a direct correlation between oil prices and ticket prices,' he added. Lower ticket prices usually boost demand for air travel.

The aviation industry is meeting in New Delhi to discuss the state of the sector. During this IATA summit, Walsh will present the outlook for industry profitability and revenues.