Oil price at 4 year low but still V high fuel surcharges
Dec 7, 2014, 12:52 pm
#166
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£40 return short haul, so a couple can get the CE experience for an extra £10 each. If you can find an ET fare that cheap.
Take a typical London to Barcelona flight. ET return (S class) £168, CE return £354.
For two people that's £186 + £186 + an extra seat which is £72 return, a total of £444. Assuming one of those people have status thus giving lounge access, flying in CE is £708. Add £15 each for a bottle of starbucks champagne and a boots meal deal and it's still £234 savings for a product almost indistinguishable from CE.
If YQ was rolled into the base fare, the savings would be under £200.
The cost for a couple to take a whole row on a LHR-JFK run in economy on a 747 in O class is:
£630 normal fare #1
£630 normal fare #2
+ £264 extra seat #3
Total £1524
Fold in YQ and it would be £630+630+477 = £1737.
Take a typical London to Barcelona flight. ET return (S class) £168, CE return £354.
For two people that's £186 + £186 + an extra seat which is £72 return, a total of £444. Assuming one of those people have status thus giving lounge access, flying in CE is £708. Add £15 each for a bottle of starbucks champagne and a boots meal deal and it's still £234 savings for a product almost indistinguishable from CE.
If YQ was rolled into the base fare, the savings would be under £200.
The cost for a couple to take a whole row on a LHR-JFK run in economy on a 747 in O class is:
£630 normal fare #1
£630 normal fare #2
+ £264 extra seat #3
Total £1524
Fold in YQ and it would be £630+630+477 = £1737.
Dec 7, 2014, 6:35 pm
#167
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Dec 13, 2014, 9:59 am
#168
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...And when will fuel surcharges be reduced/eliminated??
With oil prices having fallen below $60 a barrel, when will these be reduced/eliminated???
Dec 13, 2014, 10:01 am
#169
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What's a fuel surcharge? YQ is now known as the carrier surcharge in order to remove the link to fuel prices!
So answer: probably never. Unless there's a good commercial reason to do so.
EDIT: I was replying to the post immediately above mine which was in a separate thread when I hit reply.
So answer: probably never. Unless there's a good commercial reason to do so.
EDIT: I was replying to the post immediately above mine which was in a separate thread when I hit reply.
Dec 15, 2014, 8:30 am
#170
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IAG says no reduction in fuel surcharges in near term
IAG says no reduction in fuel surcharges via Skift/CAPA
IAG Group said it would not lower fuel surcharges at present, citing economy factors which off-set any benefits from reduced oil prices (skift.com, 13-Dec-2014). IAG said: “The fuel surcharge has never recovered the rise in our airlines’ fuel costs since the oil price started increasing more than 10 years ago... The current decrease in fuel prices does not have an immediate, noticeable impact on our airlines given that we hedge a significant proportion of our fuel. In addition, the US dollar has strengthened recently against the euro and sterling, partly offsetting any savings that the lower prices may provide.”
IAG Group said it would not lower fuel surcharges at present, citing economy factors which off-set any benefits from reduced oil prices (skift.com, 13-Dec-2014). IAG said: “The fuel surcharge has never recovered the rise in our airlines’ fuel costs since the oil price started increasing more than 10 years ago... The current decrease in fuel prices does not have an immediate, noticeable impact on our airlines given that we hedge a significant proportion of our fuel. In addition, the US dollar has strengthened recently against the euro and sterling, partly offsetting any savings that the lower prices may provide.”
Dec 15, 2014, 8:39 am
#173
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Interesting to draw comparisons with IATA DG Tony Tyler a few months ago saying:
At least JAL have promised to lower their surcharges...
“In many cases, airlines operate now with a basic fare and a fuel surcharge of some kind and the fuel surcharge in many airlines is directly linked to the price they’re paying for fuel,” Mr. Tyler, whose organization represents the global airline industry, told a small group of reporters in Toronto. “You’ll see the fuel surcharge very quickly come down.”
At least JAL have promised to lower their surcharges...
Dec 15, 2014, 8:44 am
#174
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Dec 15, 2014, 8:48 am
#175
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Wirelessly posted (iPhone 3G: Mozilla/5.0 (iPhone; CPU iPhone OS 8_1_1 like Mac OS X) AppleWebKit/600.1.4 (KHTML, like Gecko) Version/8.0 Mobile/12B435 Safari/600.1.4)
I thought they weren't fuel surcharges and hasn't been for a while?
I thought they weren't fuel surcharges and hasn't been for a while?
Dec 15, 2014, 9:05 am
#176
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Correct, they are now described as "Carrier Imposed Charges" by BA, so that they don't have to say the F word (and I suppose could be added for any reason at all)...
Dec 15, 2014, 9:26 am
#179
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Well I'd like to see the fuel saving benefits (and I strongly suspect IAG are clearly just pocketing the benefits), go towards accelerating the retirement of older, dirtier aircraft - or a stronger set of airlines BA/IB/VY with lower debt in light of the potential headwinds in the global economy.
Dec 15, 2014, 9:38 am
#180
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