Qatar Airways to cut fuel surcharge…Lets hope first of Many…Monday, January 12 – 2015 @ 17:00
Qatar Airways announces plans to reduce the fuel surcharge following the plunge in crude oil prices, reveals the company’s CEO Akbar Al Baker.
However, Al Baker has declined to comment on how much the cut would be or when it would be implemented.
“As far as the fuel price reduction is concerned, there will be no reduction in the ticket fare, but there will be a reduction in the fuel surcharge that we are charging,” Al Baker told reporters prior to an event welcoming its first A350 XWB in Doha.
Since June 2014, crude oil prices have more than halved and have now dipped below $50 a barrel for the first time since May 2009.
“When the fuel price rose to $100 a barrel and over, the airline was in the negative territory as far as its finance was concerned. So as the oil price is going down, the airline will now get into profitability. This does not mean that if the fuel price went down 50 per cent, we have to start reducing the ticket by 50 per cent,” notes Al Baker.
No other airline in the region has announced any plans yet to cut fuel surcharge or fares on the face of falling oil prices.
In December 2014, IATA had said that global airlines would report their strongest profit margin in more than five years this year due to falling fuel prices and stronger economic growth.