Beaucaire
Topic Author
Posts: 3888
Joined: Sun Sep 14, 2003 4:48 am

Question About Jet A1 Fuel-price...

Thu Sep 28, 2006 4:23 pm

Where can I get updated prices for Jet A1 fuel ?
Most airlines still apply heavy fuel-surcharges although they are not hedged-e.a.they pay spot-prices and should reflect the drop in fuel-costs by reducing their fuel-surcharges.
I am aware that some airlines have long-term hedge-contracts -but not all of them do.But all airlines maintain their surcharges -so it is clearly additional revenue and in contradiction to pricing-transparency.
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ANother
Posts: 1833
Joined: Thu Nov 03, 2005 2:47 am

RE: Question About Jet A1 Fuel-price...

Thu Sep 28, 2006 5:40 pm

The objective of the airlines is to produce shareholder value, not to provide their service for the cost of doing so. Pricing, in most markets, is very competitive.

Although I don't agree with the idea of applying surcharges as a separate component I always see the final price before I put my money down, so to me the price is transparent. I see nothing wrong with the airlines making money, in fact I am happy that they are doing so - it means that they stay in business.

Airlines, including the biggest and most profitable, do not make sufficient profits to cover their cost of capital. Think about that for a moment. See here (PDF file download)

I also don't think you are correct is saying 'all airlines maintain their surcharge'. Many airlines have surcharges, but not all. And those that have surcharges do update them but, thankfully, not every day.
 
kappel
Posts: 1836
Joined: Thu Jul 14, 2005 6:48 pm

RE: Question About Jet A1 Fuel-price...

Thu Sep 28, 2006 5:42 pm

I just heard on the news that KLM has decreased it's fuel surcharge. 1 euro on short haul, and 5 euros on long haul (that would be 2 resp 10 euros for a return flight) IIRC that's the first time in a long while since that happened. Any other airlines following?
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