Go Back  FlyerTalk Forums > Travel&Dining > TravelBuzz
Reload this Page >

Oil prices continue steady decline, time for airline nuisance fees to end too?

Oil prices continue steady decline, time for airline nuisance fees to end too?

Old Aug 10, 08, 9:01 pm
  #1  
Moderator: Luxury Hotels and FlyerTalk Evangelist
Original Poster
 
Join Date: Sep 2002
Location: Palo Alto, California,USA
Posts: 17,194
Oil prices continue steady decline, time for airline nuisance fees to end too?

At least some airlines said that when fuel prices went down, they would drop those disgusting nuisance fees (fuel surcharges on FF tickets, first checked bag fee, etc.).

We haven't returned to old levels but, as CNN pointed out today, auto fuel prices have now declined for 24 consecutive days. Presumably the same is true for aviation fuel.

Has anyone seen a single giveback from a U.S. carrier? Does anyone expect one?

For me, the answers are "no" and "no." But I do expect further gutting of FF programs with fuel prices being given as a reason -- despite now being partially wrong.
RichardInSF is online now  
Old Aug 10, 08, 9:44 pm
  #2  
 
Join Date: Jun 2004
Location: DFW
Programs: DL PM, .6MM; AA Plat; Marriott Platinum Premier
Posts: 4,891
The nuisance fees were relatively slow in coming compared with the steep rise in oil prices, so I would expect them to be relatively slow in going away while oil declines. The airlines have a ****load of $15 and $25 checked bag fees to collect before they can make up for the additional fuel costs incurred so far.
nd_eric_77 is offline  
Old Aug 10, 08, 10:12 pm
  #3  
Suspended
 
Join Date: May 2008
Location: San Diego
Posts: 3,723
I would not recommend holding your breath for these fees to go away. I feel that the only way, as a consumer, to send the message is to not fly those airlines that charge these fees.
D1andonlyDman is offline  
Old Aug 10, 08, 10:14 pm
  #4  
Moderator: Luxury Hotels and FlyerTalk Evangelist
Original Poster
 
Join Date: Sep 2002
Location: Palo Alto, California,USA
Posts: 17,194
Originally Posted by D1andonlyDman View Post
I would not recommend holding your breath for these fees to go away. I feel that the only way, as a consumer, to send the message is to not fly those airlines that charge these fees.
I certainly agree. In fact, I've never known an airline nuisance fee that EVER went away. The airlines are very two-faced, but in the case of the baggage fees, maybe Southwest can shame the "legacy" carriers into dropping them.
RichardInSF is online now  
Old Aug 11, 08, 1:34 am
  #5  
 
Join Date: Nov 2006
Programs: AA Plat/1MM
Posts: 546
I would bet money that we will NEVER see these fees dropped.
VonS is offline  
Old Aug 11, 08, 5:00 am
  #6  
 
Join Date: Nov 2006
Programs: DL, QF, QR Silver, MR Lifetime Gold
Posts: 6,393
Keep in mind that airlines hedge jet fuel. As such, fluctuations in oil prices don't immediately affect the airlines; significant variations in price over time certainly take their toll though.

Another issue is the fact that these fees have been idiotically added, instead of raising the fares proportionally to the higher fuel costs.
florin is offline  
Old Aug 11, 08, 5:19 am
  #7  
FlyerTalk Evangelist
 
Join Date: May 2004
Location: Soon to be LEGT
Posts: 10,928
Originally Posted by RichardInSF View Post
I certainly agree. In fact, I've never known an airline nuisance fee that EVER went away.
Buy On Board certainly is one such nuisance fee, and it got eliminated by a number of European airlines like OS and LX.

AF have more than once rescinded parts of their fuel surcharges when the oil price has been falling. Other airlines have done this, too (I am only certain about A3 and OK because that's who I fly, but I am sure they weren't alone).

I am sure there are more examples...
graraps is offline  
Old Aug 11, 08, 5:51 am
  #8  
 
Join Date: Aug 2007
Location: Truth or Consequences, NM
Programs: HH Gold, Marriott Bombay Titanium, Hertz President's Circle, UA Silver, Mobile Passport Unobtanium
Posts: 5,220
Originally Posted by RichardInSF View Post
At least some airlines said that when fuel prices went down, they would drop those disgusting nuisance fees (fuel surcharges on FF tickets, first checked bag fee, etc.).
Which airlines said that? While I recall them using high fuel prices as justification for adding the fees, I don't remember any saying they'd be rescinded if fuel prices declined.
Diplomatico is online now  
Old Aug 11, 08, 6:48 am
  #9  
 
Join Date: Sep 2007
Programs: DL Silver, AS MVP, UA Silver, HHonors Diamond, Marriott Plat, SPG Plat, National Exec Elite
Posts: 3,878
Most of the airlines have business models forecasting profitability at $75-$85 a barrel. I doubt you'll see any fees go away unless oil drops below that threshold.
IsleOfMan is offline  
Old Aug 11, 08, 6:53 am
  #10  
 
Join Date: Sep 2000
Location: NC
Programs: AA Lifetime Plat - 2MM miles
Posts: 8,434
Not going away, ever. Just a sucky fact of airline travel now
Redhead is offline  
Old Aug 11, 08, 10:38 am
  #11  
Moderator: Luxury Hotels and FlyerTalk Evangelist
Original Poster
 
Join Date: Sep 2002
Location: Palo Alto, California,USA
Posts: 17,194
Originally Posted by Diplomatico View Post
Which airlines said that? While I recall them using high fuel prices as justification for adding the fees, I don't remember any saying they'd be rescinded if fuel prices declined.
The quote I saw was from Delta, but unfortunately, I don't remember the specifics.
RichardInSF is online now  
Old Aug 12, 08, 5:19 am
  #12  
In Memoriam
 
Join Date: Apr 2005
Location: COS
Programs: JAL Global Club, One World Sapphire, IHG Platinum, Marriott Gold
Posts: 1,246
Originally Posted by Diplomatico View Post
Which airlines said that? While I recall them using high fuel prices as justification for adding the fees, I don't remember any saying they'd be rescinded if fuel prices declined.

JAL has said it also.
Black Adder is offline  
Old Aug 12, 08, 6:20 am
  #13  
 
Join Date: Oct 2007
Location: Munich, Germany
Programs: Miles&More Blue, SPG Platinum
Posts: 3,072
Airlines that increased their fuel surcharge will maybe lower it but probably not before late fall when the holiday travel season is over and not as much as they have increased it. All these baggage fees will probably stay.
flyingfkb is offline  
Old Aug 12, 08, 8:40 am
  #14  
 
Join Date: Mar 2007
Location: US
Programs: DL GE
Posts: 1,654
Yes oil prices are going down, but what was it in 2000? $20, $30?

We aren't there yet, and we can't say "it's over" because this may just be a fluke. If you would expect the airlines to remove these fees now, your crazy.

If you expect them to fluctuate with the market your even crazier.

If it gets down to maybe $50 a barrel and stays there for a couple years we may be on to something.
pragakhan is offline  
Old Aug 12, 08, 9:17 am
  #15  
Moderator: Flying Blue (Air France & KLM), France and TravelBuzz!
 
Join Date: Jan 2001
Location: Paris, France, AF F+ Rouge pour toujours, Flying Blue whatever, LH FTL, HHonors Gold, formerly proud SCC Executive, now IC Ambassador, BA down to nobody, Grand Voyageur Le Club
Posts: 12,240
AF has, in the past, lowered the fuel surcharge three times, when the price of oil has gone down.
JOUY31 is offline  

Thread Tools
Search this Thread
Search Engine: