Air fuel surcharges

BT34Red

Next week we are due to pay for our holiday later in the year. Are we likely to be hit by fuel surcharges from tour operators or are we protected?

eskbanker

https://forums.moneysavingexpert.com/discussion/6661946/air-fuel-surcharges

Are there any clauses within the Ts & Cs claiming the right to apply such surcharges?

Woodstok2000

https://forums.moneysavingexpert.com/discussion/6661946/air-fuel-surcharges

They can only apply a surcharge if the contract says it is allowable, and then they must also decrease the cost if fuel prices go down. If the increase is above 8% of the package cost then you get the right to cancel.

Depending who you've booked with, operators with their own airline (e.g. Jet2) tend to hedge fuel prices significantly and will also charge flight only customers before they look at those on packages.

Westin

The actual hedging of fuel prices by some airlines is one thing. The actual supply of aviation fuel is another. If the tankers cannot get through it matters not what price had been hedged.

I heard a report that the last tanker of aviation grade fuel left Saudi just before the conflict started and is two weeks before docking in the U.K. No supplies have left the ME since then heading this way. Kuwait was our largest supplier of aviation fuels.

If the conflict goes on for much longer, expect to see airlines pruning route networks and flight consolidation. Aviation fuel supply will be a bigger problem than the price.

NoodleDoodleMan

There was a airline travel observer on radio a couple of mornings ago - apparently many airlines buy their fuel months in advance so any price increases are unlikely to be a factor until such stocks run down.

Not sure the details of that across the industry.

MyRealNameToo

Saw someone a couple of months had launched a marine and aviation fuel insurance policy as an alternative to hedging. I suspect they will either be thankfully they havent been too successful in sales yet or will be struggling to find new underwriters next year.

As to the OP, its possible elements like surcharges are variable and may go up (or down) and a sensible contract will reflect this. If it's very material against the total cost of the holiday, given you appear to have booked a package holiday, then you would have a right to cancel for a full refund.

born_again

https://forums.moneysavingexpert.com/discussion/comment/81944003#Comment_81944003

Would that work on the same basis of we have roughly 3 months stock of petrol/diesel. Yet prices were rising in days?

Local shell has gone from Friday £1.50, £.152 (next day) £1.55 (Wed) to £1.69 Friday a LTR in a week.

NoodleDoodleMan

Not a subject I could claim to have any insight into.

From what was said, and if I understood the expanation correctly, the major airlines buy well in advance so price rises in aviation fuel don't immediately affect them.

Petrol and diesel may wotk differently ?

I may be doing them a disservice - but Shell garages appear to be be about the dearest to be found - with BP not far behind.

I saw one Shell garage yesterday @ £1.59 per litre unleaded - our local Tesco is £1.46, Asda likewise.

Annemos

https://forums.moneysavingexpert.com/discussion/comment/81943960#Comment_81943960

Yes Westin, this is my concern, too.

Just when will that actual lack of supply of aviation fuel start to kick in? Will some overseas Airlines not even fly over to UK, if they are unable to refuel over here?

Westin

https://forums.moneysavingexpert.com/discussion/comment/81944450#Comment_81944450

I believe most countries will hold some reserves - but that is going to vary. I think the UK it is about 50-70 days. Other countries will be lower.

If fuel reserves are used then expect a degree of careful distribution. I would think for example that the RAF, emergency aircraft/helicopters would have first dibs. Then perhaps essential air service routes. LHR more likely to gain supplies over say Doncaster Airport. The division of the stock will no doubt have careful thought and be contingency planned. Certainly I would think a case of fuel being available for air ambulances vs. a Jet2 holiday charter to Malta.

I also suspect overseas airports will be an issue. Whilst access to aviation fuel might be possible for longer at Gatwick or Manchester - I can't image the same would be true down route in say Preveza, Skiathos or Zante. I wouldn't think an airline would send an aircraft out if fuel for the return was questionable.

First up will be airlines pruning or consolidating flights. Then short notice cancellations when fuel at destination airports can't be guaranteed.

Fun times ahead….

diveunderthebonnet

I remember flying in the 70,s when there was a fuel crisis , the air hostess came down the plane collecting money of every passenger ,paid by cheque as Harold Wilsons government only allowed us £50 cash to take abroad.