LONDON (AFP) ??” High firing costs represent a "major threat" to airlines' profitability.

LONDON (AFP) ??” High firing costs represent a "major threat" to airlines' profitability, although European carriers are better placed than their US rivals to withstand the impact, according to a report published from credit rating agency Standard and Poor's.

The immediate impact of high oil prices largely hanged on the ability of companies to pass forward increased expenses to their customers, said Standard and Poor's credit analyst Leigh Bailey.

Airlines that sold directly to consumer and base it difficult to pass forward costs in a competitive environment were worse opposite to he added.

"High firing material prices represent a major threat to airlines' profitability," the report warned.

Rising firing costs had prevented the European airline industry from translating improving passenger numbers into increased profitability this year.

"In an