The bigger they are, the harder they fall. Whoever came up with that phrase surely wasn't talking about the cost of flying. News comes this week that fuel surcharges for flights between Europe and the U.S. have hit record highs, and there is no sign of a drop in fees anytime soon.

A report commissioned by the European Low Fares Airline Association (ELFAA) predicts that budget carriers will carry the bulk of the point-to-point airline traffic within Europe by 2020. What does this trend mean?

The airline most synonymous with add-on fees is doing it again. Ryanair is adding €2 (US$2.80) to every one-way ticket, but instead of a service or 'convenience' fee, you might consider this one a form of protest.

You don't hear much about budget airline Allegiant Air, even in the U.S. as the airline has quietly carved out its own unique business model based on fees and vacation packages. But an idea to charge fares with a final price tied to the cost of fuel on the day of travel is surely getting attention. Will we be seeing adjustable rate fares in the future?

They say that a rising tide lifts all boats. The same can be said about air fares when that tide happens to be in the form of surcharges. The cost of fuel has airlines bracing for another rough period, but this is one wave the airlines intend on riding out – thanks to higher fares.

International Consolidated Airlines Group (IAG), the parent company of British Airways and Iberia, is seeking a short-haul carrier to add to its portfolio. It's becoming apparent that airlines can't be all things to all types of flyers, though they have certainly tried. Now it may be time to acquire the missing pieces.

It seems that the industry can't catch a break. Finally, there are reports of passenger traffic improving and profits returning to financially battered airlines. Well, good news in the airline industry seems to last about as long as winter daylight in the Arctic. What could it be now?

The airlines have been in recovery mode over the last 12 months and the picture has been looking brighter. Planes are flying full and many carriers around the world are posting their first quarterly profits in a while. If you know the airline business well enough, you know that sustained good news is rare. An obstacle to airline profits has emerged once again, and you could be paying more for your airline tickets as a result.

The official name of the merged British Airways-Iberia Airlines entity is International Consolidated Airlines Group SA (IAG) after trading of its stock began the week of 24 January. The combined airlines will be the 2nd most valuable airline group in Europe based on market value. But being number two may not be enough as IAG hints at bringing more airlines under its wing.

Airlines in the United States have found a winning formula for sustained revenue – keep charging for checked baggage. The total in 2010 has surpassed US$2.5 billion and shows no signs of slowing down.