Fuel surcharges to drop?Back to Forum
Anonymous15 Oct 2014
Among many airlines, BA forward buys it’s fuel, hoping to get a stable price. We understand the process.
Now that crude oil prices have dropped so markedly, can we expect to see a similar percentage drop to the “fuel surcharge” in a few months time. In a years time, pro rata, we should see a matching price drop, if the airlines are honest.
The lower fuel price must put the airlines in an embarrassing situation when they have to explain that their fares have not reduced accordingly.
Maybe BT can jump on this band wagon and pose the question formally for us.15 Oct 2014
Unfortunately fuel surcharges know only one way: up. This goes to show that they have become detached from the price of oil and are used by airlines as a means of charging frequent flyer award bookers at will. It would be fabulous if BT challenged airlines with large FFPs like BA, LH and AF/KL on this issue.15 Oct 2014
MartinJ. CX have cut there fuel surcharges wef from 1st Oct. A tiny cut compared to the drop in fuel prices
Here is the link15 Oct 2014
David – In Hong Kong the fuel surcharges are monitored every month by the local CAA. So if CX were to reduce its surcharge one would expect other airlines (i.e. those operating ex-Hong Kong) to do likewise.15 Oct 2014
I think we’ve been discussing this in another thread, “oil prices”. I was just read an article prepared for Swires main board that as CX’s hedges expire they will not be renewing them for the foreseeable future. With fuel accounting for 33% of their operating costs they are now only 35% hedged compared to 65% last year.15 Oct 2014