Relief from Fuel Surcharges?
Posted by
Jonathan on Tuesday, October 21, 2008
With the recent drop in the price of oil, some European airlines have begun to cut those fuel surcharges that help push the price of an airline ticket into the stratosphere. British Airways, Virgin Atlantic, Lufthansa and Air France/KLM have all reduced their surcharges on passenger tickets, while other foreign and domestic carriers, including Northwest, have cut their fuel charges on air cargo.
Domestic U.S. carriers however, have been reluctant to make similar reductions, arguing that the price of jet fuel remains too volatile to predict reliably over the next few months. Delta has started to relax surcharges on some international flights, but so far they have been reluctant to do so domestically. Despite lower fuel costs, the industry still expects to post a collective loss of about $6 billion for 2008.
Robert Menendez, a Democratic Senator from New Jersey sent a letter to 11 U.S. airlines on Monday requesting they discontinue the surcharges and other fuel-related fees. “I urge you to pass the savings from lower jet fuel prices on to the American public by rolling back fuel surcharges and extra fees,” Mr. Menendez said in his letter. “If you tell the public that you need long-term higher prices to survive, I urge you at the very least to do it directly through fares, rather than a collection of confusing and hidden fees.”
While it looks like new fees for things like baggage, food, drinks and pillows and blankets are here to stay, passengers *may* get a reprieve from fuel surcharges in the near future. Now that the price of oil is dropping, should US domestic carriers respond in kind and reduce or eliminate the fuel surcharge? Let us know in the comments section below.
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Reader Comments
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These mismanaged carriers aren't smart enough to do the right thing. I expect they will continue to gouge the very people they should be courting. Thank God for Southwest- the only airline who understands their customer base and how to run an airline.
by David on
Tuesday, October 21, 2008
They should charge what the need to charge, but let us know whenwe book. There should not be any last minute surprises.
by BRIAN MAGINNESS on
Wednesday, October 22, 2008
Look, these "fuel surcharges" were never directly related to fuel costs. They are simply a way to raise fares while pretending they didn't, but quoting an absolutely phony "base fare", whcih means nothing. It should be illegal. They need to be required to include in the initial fare quote anything that isn't a government imposed fee or tax, or an option that the passenger can decline to utilize (such as baggage fees). The so-called fuel surcharge also serves to allow the airlines to cheat travel agents, corporate accounts, and the IRS, and I can't imagine there isn't legal action coming.
by DaveS on
Friday, October 24, 2008
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