Higher oil prices spell higher faresBack to Forum
A number of airlines (mostly LCCs currently) will be hiking fares owing to higher fuel prices.
There will be a particular problem on those LCCs operating long-haul services as the longer the flight the less efficient is the fuel burn.
But Jet Airways has gone a step further. It wants to cut staff pay by as much as 25 per cent.2 Aug 2018
For a couple of years until the middle of 2014 the oil price sat at around $115/barrel, when it dropped sharply to as little as $30 and it has been steadily increasing to around $70.
When it peaked, most airlines added so-called fuel surcharges. When it fell, the surcharges remained. So they have been coining it ever since. Now that the price is on the way up again, they want to increase the surcharges.
Any thoughts?2 Aug 2018
I think the average price of flights has probably decreased over recent years (I may be incorrect) but the end price to the consumer seems to be pretty stable. If you start thinking about fuel surcharges, sometimes the airlines will win and sometimes they’ll loose, the end price is the most important number to to the buyer.
Here’s an idea that I heard on a podcast earlier this year – why not pay x amount to reserve a seat on a plane and then pay the fuel when you’ve flown? We do it with rental cars, so why not flights ?2 Aug 2018
In June Norwegian announced it would be raising fares.
Ryanair and Qatar Airways have warned that fares may have to rise.3 Aug 2018