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Joined: Tue Feb 10, 2004 4:54 pm

Fuel Surcharges

Sat Oct 09, 2004 4:01 pm

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.
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RE: Fuel Surcharges

Sat Oct 09, 2004 5:58 pm

This is kind of off the topic but Times of India reported that IA, Jet and Sahara will increase their fares by about 10% to compensate for the increase in fuel prices.

sorry the link is not a hyperlink but I just joined and I'm still trying to figure out how to hyperlink.
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RE: Fuel Surcharges

Sat Oct 09, 2004 6:24 pm

NZ and QF have both raised their fuel surcharges here in NZ (I think it is now $25NZ up from $20NZ)
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RE: Fuel Surcharges

Sat Oct 09, 2004 7:04 pm

fuels cheap in the US! in the UK, even our ferries have a fuel surcharge on them now!!!!!!!! (NCL-AMS, with DFDS!)
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RE: Fuel Surcharges

Sat Oct 09, 2004 7:19 pm

DJ also have a fuel surcharge for both domestic and international operations.
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RE: Fuel Surcharges

Sat Oct 09, 2004 8:24 pm

Everyday I drive my car for about 22 km (50mins) to reach my workplace. I've asked to my employer the fuel surcharge, but I don't think he'll agree with my idea.

I don't think this is a serious behavior for airlines.
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RE: Fuel Surcharges

Sat Oct 09, 2004 9:34 pm

KLM had another increase in fuel surcharge this week.
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RE: Fuel Surcharges

Sat Oct 09, 2004 9:38 pm

Are ALL low-cost carriers to avoid putting fuel surcharge onto the price of tickets? I know FR won't, but I'm not sure about the others.
"Everyone writing for the Telegraph knows that the way to grab eyeballs is with Ryanair and/or sex."
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RE: Fuel Surcharges

Sat Oct 09, 2004 9:43 pm

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?

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