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.