FlyerTalk Forums - View Single Post - Airlines not dropping fuel surcharge!
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Old Nov 27, 2001 | 5:26 pm
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Air Canada reduced their fuel surcharge last week, from C$30 [US$19] on a return ticket to C$15 [US$9.50]. Not to defend the airlines, but they have likely locked in their supplies for the coming months at a rate that, while lower than in the past year, may still be higher than the current bench mark level. It always take several months for prices to average out, and while some think the surcharge was added hastily, the carriers had been losing money for several months on their hedged prices for aviation fuel. [Not to mention losing money on operations overall.] Our gas at the pumps is not based on hedged pricing, while the price paid by big users like the airlines is. So we really can't use that price level as a valid reference point.‡
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