tcook052

http://cnews.canoe.ca/CNEWS/Canada/2...13523-sun.html

OTTAWA -- Canadians should prepare to pay more for airline tickets, but rising fuel costs won't likely cripple Canada's largest carrier.

why fly

Jets-go......... GONE will have a bigger impact that fuel costs. RM really jumped up flight costs after that.Asia seems cheaper today than it was last year??? So how does RM think he will bump up prices. MU has got amazing rates to China.

Shareholder

Does this really consitute "news"? RM and every other airline president has said this at every speech for the past several years. What else is new?

As for certain fares, HKG has actually dropped as AC established its new default fare in H, and cutting the base price by about $300 over what H fares were going for earlier this decade. [Remember all those threads about where to find discounted H fares that Andrew posted?] Of course, there are the fuel supplements that book the actual cost. And foreign airlines can offer cheaper fares because they don't offer the frequency, and have far cheaper labour costs, not to mention national origin fuel prices that dwarf our free market ones. But same goes for most destinations worldwide. If you want a cheap flight to somewhere in Africa, book Ethiopian or some similar national carrier.

ALW

If AC goes somewhere with cheap gas, why don't they fill up while they're there?

=aw

exAC

They do on short segments. Two things make this a costly or cost effective bargain.

1. There is a cost of 5% per hour for every litre of extra fuel carried. A ten hour flight means that 50% of the tankered fuel is consumed just to get it to the destination.

2. Long haul flights do not have very much extra room for fuel versus payload.

ALW

Thanks for confirming that, it's what I figured.

My response was to SH's claim that foreign carriers can offer cheaper fares to Canada because they have cheaper fuel. Shurely the flight into Canada (outbound for the foreign carrier, inbound for AC) is powered by cheap foreign fuel, and the flight from Canada (inbound for the foreign carrier, outbound for AC) is powered by the same expensive sold-in-Canada fuel, for both carriers?

I couldn't figure out how he was saying that (e.g.) CX can fly a plane HKG-YVR-HKG on cheaper fuel than AC can fly a plane YVR-HKG-HKG.

=aw

tcook052

In a related story:

http://www.canada.com/businesscentre...1-e4195f1fb1ec

MONTREAL (CP) - The International Air Transport Association has announced a revised industry loss forecast of $7.4 billion US for the world's airlines this year in the light of skyrocketing oil prices.

boymimbo

I kind of don't get this. Why can't the airlines pass this cost to the customer? If I am using 200L of fuel on a flight and that cost is $.88 liter and the airline budgeted $.50/L, shouldn't I be paying $76 as a fuel surcharge? I'd be willing to accept this. If airlines are undercutting each other and not passing on the costs to the customer, p*ss on them, they should go bankrupt. Sorry. Oil companies pass on the costs, why shouldn't airlines?

Rejuvenated

That's exactly what I though as well since for long hauls (regardless of the carrier) they would have to fuel for the outbound and then refuel for the return.

Doc Fraud

How does foreign fuel = cheaper, unless it is heavily subsidized by some entity?? I mean unless you are and airline originating in an OPEC nation?? When I go to Europe my eyes water when I look at fuel prices??

DF