In the past month, Fiji Air has announced it is struggling to survive, the American Peace Corps has ended its commitment to Kiribati, Solomon Islands has reduced its flights, while Continental Airlines is suspending Saipan-Manila flights.
George Faktaufon, from the Association of South Pacific Airlines, has told Radio Australia’s Pacific Beat program, airfares will have to rise.
“Even in good times it has always been a challenge for regional aviation,” he said.
“The airlines, they have been absorbing to some extent the increases, but I think the time is coming now where they will have to pass it on to somebody to bear that.”
