Fuel Surcharges

tonymc

With regard to the fuel surcharges that the airlines started adding to fares last year, now that fuel prices are dropping, has anyone managed to get the surcharge reduced or fully refunded?

Although we don't fly until August, I am interested to see if airlines are giving the money back or using it to add to their profits!!

xzibit

I think they will argue they need it or something. I don't see anyone getting it back in a hurry.

pin

While I agree with you re the fuel surcharges, the airlines are going to hold off as long as possible.

Also you have to remember the buying of airline fuel is quite specialised involving hedging of prices and buying in bulk and using futures markets, etc. Therefore the cost of fuel now may not be a reflection of what the airlines paid for the fuel.

However airlines are now (but slowly) starting to reduce their fuel surcharges.

WiseInvestor_2

The reductions have started.

British Airways have just reduced their Longhaul fuel surcharge by £5 per sector for all flights less than 9 hours duration, with effect from today.

I don't doubt others will follow suit very soon.

pin

WiseInvestor wrote:

The reductions have started.

British Airways have just reduced their Longhaul fuel surcharge by £5 per sector for all flights less than 9 hours duration, with effect from today.

I don't doubt others will follow suit very soon.

Virgin and Swiss reduced their charges a few weeks ago.

helen81_2

Hi,
Thomsons don't charge any now!
Helen x :j

tonymc

Thanks for the replies - I'd forgotten about the airlines advance purchases of fuel.

Bit of a pain though when it looks as if we will have to add on the new passenger taxes, potentially another £200+ for us!!

iceman_2

If i remember rightly the surcharges were added after oil prices shot up from around $20 to around $60 a barrell. Prices are still hovering around $60, tho seem to be heading down towards $50, with any luck lower. However this is still 150% higher than the long-term average a few years ago, so i imagine some airlines will keep surcharges in place for a while.

pin

iceman wrote:

If i remember rightly the surcharges were added after oil prices shot up from around $20 to around $60 a barrell. Prices are still hovering around $60, tho seem to be heading down towards $50, with any luck lower. However this is still 150% higher than the long-term average a few years ago, so i imagine some airlines will keep surcharges in place for a while.

Hmm, but remember inflation to your prices.

mystic_trev

Oil prices are still coming down but it might only be a temporary blib.All it needs is the Israelis to go and bomb Irans Nuclear instalations and the price would surge to over $100 a barrel.

iceman_2

pin wrote:

Hmm, but remember inflation to your prices.

OK, only about 140% then!!

If we include the fall in the dollar as well its probably about 100%, still a big rise.