Air fares could be about to fall

The extremely shaky global economy could force airlines to lower their prices in order to attract customers.

Many carriers have seen their profits tumble because of the high cost of jet fuel, but hiking the price of tickets to offset this decline appears to be out of the question.

The International Air Transport Association has predicted airlines' margins will fall even further in the near future and many will have little choice but to offer discount rates.

While this may seem counter-productive, the simple fact is that travellers are shunning flights because of the uncertain economic climate and businesses need to take drastic measures to attract new customers. Unsurprisingly, it is European firms that are struggling the most.

Aussies who are planning to travel around Europe could benefit from lower fares as a result. The weakness of the euro also means it is a good time to buy overseas travel money, as your dollars will stretch much further.

If you are planning to roam around the continent, it is perhaps best to purchase a prepaid travel card, especially if you have a budget to stick to.

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