Copa fuel surcharge increase
Dec 4, 2014 | 8:02 am
#1
Original Poster
Join Date: Nov 2010
Posts: 107
Copa fuel surcharge increase
If this thread needs to be moved, please do so, wasn't sure where it fit based on sub-forum descriptions.
Very recent efforts to book on copa are showing a huge fuel surcharge increase - 2 pty-las tickets booked in october for nov and dec travel had a 40$ surcharge - rebooking the december ticket and/or buying new tickets into next year has a 160$ charge for the same ticket. Have quickly looked at the much shorter route of PTY-MIA and find the same 160$ fuel surcharge. I spoke to a copa representative who was unable to offer more information than I already had.
I can only assume that buying fuel at spot is cheaper than giving up whatever hedge they have in place given how low oil it - unless they are already contracted into delivery at a much, much higher price? Not sure exactly how airlines work this, would assume they just hedge with futures and use proceeds to offset increases in fuel purchases (thus the issues delta had when they were forced to sell their hedge position before they went into bankruptcy).
Any insight into this? Has put copa into highest price on the routes I might use them for. (also looks like a large tax increase, which I guess is from panama?)
More generally, quadrupling the fuel surcharge while oil hitting multi-year lows is odd. The opposite would seem to be true - airlines should be taking advantage of this to hedge out fuel costs as long as they can from the current price action.
Very recent efforts to book on copa are showing a huge fuel surcharge increase - 2 pty-las tickets booked in october for nov and dec travel had a 40$ surcharge - rebooking the december ticket and/or buying new tickets into next year has a 160$ charge for the same ticket. Have quickly looked at the much shorter route of PTY-MIA and find the same 160$ fuel surcharge. I spoke to a copa representative who was unable to offer more information than I already had.
I can only assume that buying fuel at spot is cheaper than giving up whatever hedge they have in place given how low oil it - unless they are already contracted into delivery at a much, much higher price? Not sure exactly how airlines work this, would assume they just hedge with futures and use proceeds to offset increases in fuel purchases (thus the issues delta had when they were forced to sell their hedge position before they went into bankruptcy).
Any insight into this? Has put copa into highest price on the routes I might use them for. (also looks like a large tax increase, which I guess is from panama?)
More generally, quadrupling the fuel surcharge while oil hitting multi-year lows is odd. The opposite would seem to be true - airlines should be taking advantage of this to hedge out fuel costs as long as they can from the current price action.
Last edited by Woofdog123; Dec 4, 2014 at 8:08 am
Dec 4, 2014 | 8:44 am
#3
Original Poster
Join Date: Nov 2010
Posts: 107
USD 508.00
(PA)
USD 35.60
(FZ)
USD 40.00
(XT)
USD 65.10
Forma de Pago :
TARJETA DE CREDITO
Total Pagado :
USD 648.7
this was for a ticket that was to be used this week, bought in october.
identical ticket today, even accounting for 50 dollar higher base far (which surely increases taxes slightly) shows 120$ fuel increase and $55 total tax increase (both countries)
Base Fare USD 558.00
Fuel Surcharges
USD 160.00
Taxes (Approximate)
USD 155.40
TOTAL:
USD 873.40
looking at other booking systems to try to get a breakdown of it, it appears to be Panama VAT is being added to tickets, which in the past wasn't the case. This is in addition to quadrupling the fuel surcharge.
(PA)
USD 35.60
(FZ)
USD 40.00
(XT)
USD 65.10
Forma de Pago :
TARJETA DE CREDITO
Total Pagado :
USD 648.7
this was for a ticket that was to be used this week, bought in october.
identical ticket today, even accounting for 50 dollar higher base far (which surely increases taxes slightly) shows 120$ fuel increase and $55 total tax increase (both countries)
Base Fare USD 558.00
Fuel Surcharges
USD 160.00
Taxes (Approximate)
USD 155.40
TOTAL:
USD 873.40
looking at other booking systems to try to get a breakdown of it, it appears to be Panama VAT is being added to tickets, which in the past wasn't the case. This is in addition to quadrupling the fuel surcharge.
Last edited by Woofdog123; Dec 4, 2014 at 9:23 am
Dec 10, 2014 | 6:34 pm
#4
Join Date: Jan 2013
Location: 대한민국 (South Korea) - ex-PVG (上海)
Programs: UA MM / LT Gold (LT UC), DL SM, AA PLT (AC), OZ, KE; GE and Korean SES (like GE); Marriott Gold
Posts: 1,995
Lowest petroleum costs in years, yet airlines still add on "fuel surcharges", which should be a routine cost of doing business. Yes, YOU - BA and Copa!
Aug 2, 2016 | 2:10 am
#7
A FlyerTalk Posting Legend
Join Date: Apr 2013
Location: PHX
Programs: AA EXP; UA 1MM & PP; Marriott AMB; Hyatt Globalist; Hilton Diamond (Aspire)
Posts: 62,274
Fuel surcharge doesn't really matter unless you're booking an award ticket via a program that passes fuel surcharges through.
For paid fares, they are just a component of the overall fare. Just like the international surcharge (YQ).
For paid fares, they are just a component of the overall fare. Just like the international surcharge (YQ).
Aug 2, 2016 | 8:22 am
#8
Join Date: Aug 2015
Location: IAH
Programs: UA
Posts: 684
I've recently been studying the Copa fees, and comparing them to my United receipts to compare and try to decipher the two-letter codes on Copa. All for trips originating in PTY.
My take:
FZ = Panama Departure Tax = $40
PA = Panama Tourism Tax = precisely 7% of base fare. I understand this is applicable to trips originating in PTY, regardless of citizenship, residency, etc. I think it is a coincidence the 7% is equal to Panama's ITBMS.
F3 = Panama Airport Development Fee = $10
AH = Panama Airport Security Fee = $2.50
XT = unsure, but I'm guessing it's the sum of the fees for the destination. The percentage varies, but I see it fixed for certain destinations.
The fuel surcharge thing is pretty confusing. In some of my receipts, I see a breakdown by air fare, fuel surcharge, and taxes/fees. But mostly my receipts show the base airfare, plus 3 lines for the taxes / fees with the 2-letter codes.
My take:
FZ = Panama Departure Tax = $40
PA = Panama Tourism Tax = precisely 7% of base fare. I understand this is applicable to trips originating in PTY, regardless of citizenship, residency, etc. I think it is a coincidence the 7% is equal to Panama's ITBMS.
F3 = Panama Airport Development Fee = $10
AH = Panama Airport Security Fee = $2.50
XT = unsure, but I'm guessing it's the sum of the fees for the destination. The percentage varies, but I see it fixed for certain destinations.
The fuel surcharge thing is pretty confusing. In some of my receipts, I see a breakdown by air fare, fuel surcharge, and taxes/fees. But mostly my receipts show the base airfare, plus 3 lines for the taxes / fees with the 2-letter codes.