FlyerTalk Forums - View Single Post - Fuel surcharge FAR higher on 2 one-ways vs return!
Old Mar 12, 2012 | 3:47 pm
  #10  
meester69
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Originally Posted by Raffles
Can anyone explain what is happening with the fuel surcharges on one-way tickets?

I was looking at a one-way and returns to Calgary in CW.

A return to YYC has a fuel surcharge of £359 + £197 of other stuff

A one-way LHR-YYC has a fuel surcharge of £180 + £165 of other stuff, mainly APD

A one-way YYC-LHR has a fuel surcharge of £276 + £32 of other stuff

So ... you are basically paying a 'surcharge' on your existing surcharge of £97 per person, return, if you book 2 x one-ways instead of a return. Why?!
Well no not really a surcharge at all is it. If you lived in YYC, it would be a discount, as you'd pay £276 + £180 instead of £276 + £276.

What it is is differential YQ pricing by origin.

Here is a quick example

JNB-LHR:
1121 ZAR in WT (~£95)
1898 ZAR in WT+ (~£160) +70%
2327 ZAR in CW/F (~£190) +108%

LHR-JNB
£119.50 in WT
£138 WT+ +15%
£179.50 in CW/F +50%

In terms of total YQ, on a 747 (52J), on a full flight, the revenue is:
ex-JNB
£22,307 in WT
£5,786 in WT+
£13,005 in CW/F
totaling £41,098

ex-LHR
£28,082.50 in WT
£4,968 in WT+
£11,847 in CW/F
totalling £44,897.50

and another

SFO-LHR
$219 WT/WT+ (~£140)
$427 CW/F (£273) +95%
total revenue = £56,059

LHR-SFO
£119.50 in WT
£138 WT+ + 15%
£179.50 CW/F + 50%
totalling £44,897.50

I think the APD surcharge for premium travel affects YQ - ex-UK, the APD hike means that the YQ charged to premium fares is much less than their fair share, so as to come up with a set of charges that is not unbalanced or distorting.

From non-UK origins, there is no APD, so YQ charged to premium pax is higher, better reflecting the much larger amount of cabin space they occupy.
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