Scotron11 From United Kingdom, joined Feb 2004, 1178 posts, RR: 3 Posted (10 years 5 months 3 weeks 1 day 1 hour ago) and read 1343 times:
While oil prices continue their seemingly unrelenting march upwards, and with winter soon upon us. why are there no fuel-surcharges in the US?
BA has just raised their surcharge on long-haul tickets sold here in the UK from £6.00 ($10.75) to £10.00 one-way ($18.00). In addition, for short-haul, the increase has gone from £2.50 to £4.00 one-way. Seems all other EU carriers, except for LCC's, are doing the same.
BA says their fuel expenses will increase by £225M (Although they say they have hedged 72% of fuel thru March, 2005). But what about US carriers? I would assume they all buy from the same market.
Some reports suggest oil will shortly reach $60/Barrel. If. more likely when, that happens, what will be the effect on carriers like UA & US, who cannot hedge, and DL, which sold their hedged oil contracts to raise cash?
While a recent increase in low-end domestic fares are fuel related, I was wondering why they don't levy a seperate surcharge across the board.
Imonti From , joined Dec 1969, posts, RR:
Reply 8, posted (10 years 5 months 3 weeks 20 hours ago) and read 1243 times:
There was a newspaper article written about saa.
"they are ever so quick to pass on fuel charges and levies to their customers, yet seem to very quickly forget they cost those very customers over $1 billion in hedging losses, so who pays? the customer pays twice essentially"
Slightly off the topic.
So is it speculation that the prices have sky rocketed, some peeps reckon their wont be enough oil to heat us homes in the winter. Is that true? I highly doubt it as with the current price people wont be turning the thermostat up so much but rather putting on another jersey.
Do they really believe there is a shortage on the horizon and that this is why there is such a price rise?