• NC Software is having a Black Friday Sale Event thru December 4th on Logbook Pro, APDL - Airline Pilot Logbook, Cirrus Elite Binders, and more. Use coupon code BF2020 at checkout to redeem 15% off your purchase. Click here to shop now.
  • NC Software is proud to announce the release of APDL - Airline Pilot Logbook version 10.0. Click here to view APDL on the Apple App store and install now.

UA Airlines Not Planning To Cut Fuel Surcharges

CaptJax

Well-known member
Joined
Mar 3, 2006
Posts
310
Total Time
some
US airlines not planning to cut fuel surcharges
AP ONLINE
Posted: 2008-09-09 19:19:00

FORT WORTH, Texas (AP) _ Although oil prices have dropped over the past few weeks, U.S. airlines have no immediate plans to reduce fuel surcharges that they tack on to the price of a ticket.

Most carriers have imposed several increases in their fuel surcharges — they range up to $170 per round trip in the United States and more for international flights — on top of fare hikes.

Fuel accounts for up to 40 percent of the budget at many of the biggest airlines, topping labor as their biggest single cost.

The price of oil slid Tuesday below $104 per barrel, its lowest closing price in five months.

U.S. airlines increased their fuel surcharges several times as oil roared past $100 a barrel and beyond, but they haven't reduced the fees as oil prices slid 30 percent since their mid-July peak.

On Monday, Singapore Airlines Ltd. said that it plans to cut its fuel surcharge by up to 10 percent. The carrier said the surcharge would fall to $36 from $40for flights between Singapore and other cities in Southeast Asia, although it didn't announce any cut in surcharges on flights to the United States.

U.S. carriers, which other than Southwest all lost money in the first half of this year, said Tuesday it's too early to eliminate the surcharges.

"We've taken a look at it, but fuel prices are still well above what we budgeted for the year," said Michelle Aguayo-Shannon, a spokeswoman for Northwest Airlines Corp. "We're happy fuel prices have come down, but they're still not in a manageable area."

Tim Wagner, a spokesman for American Airlines, the nation's largest carrier, said fuel prices "remain very volatile despite short-term trends."

The spot price for Gulf Coast jet fuel has dropped 22 percent since its early-July peak. But Wagner noted that last week's closing price was still 48 percent higher than a year ago.

Airlines closely watch the fares and fees that competitors charge because they don't like to be priced higher. The result is that when one increases fares or fees, the others often go along.

"We always try to keep our surcharges competitive with the industry, so we'll monitor what those prices are," said Robin Urbanski, a spokeswoman for UAL Corp.'s United Airlines.

That suggests surcharges could fall in a hurry if one of the six so-called legacy airlines steps forward.

Dallas-based Southwest Airlines Co. doesn't have fuel surcharges. But Southwest is among the so-called low-cost carriers. Legacy carriers often waive the fuel surcharge on routes where they compete with Southwest.
 

contrail67

Well-known member
Joined
Oct 13, 2003
Posts
954
Total Time
15,000
US airlines not planning to cut fuel surcharges
AP ONLINE
Posted: 2008-09-09 19:19:00

FORT WORTH, Texas (AP) _ Although oil prices have dropped over the past few weeks, U.S. airlines have no immediate plans to reduce fuel surcharges that they tack on to the price of a ticket.

Most carriers have imposed several increases in their fuel surcharges — they range up to $170 per round trip in the United States and more for international flights — on top of fare hikes.

Fuel accounts for up to 40 percent of the budget at many of the biggest airlines, topping labor as their biggest single cost.

The price of oil slid Tuesday below $104 per barrel, its lowest closing price in five months.

U.S. airlines increased their fuel surcharges several times as oil roared past $100 a barrel and beyond, but they haven't reduced the fees as oil prices slid 30 percent since their mid-July peak.

On Monday, Singapore Airlines Ltd. said that it plans to cut its fuel surcharge by up to 10 percent. The carrier said the surcharge would fall to $36 from $40for flights between Singapore and other cities in Southeast Asia, although it didn't announce any cut in surcharges on flights to the United States.

U.S. carriers, which other than Southwest all lost money in the first half of this year, said Tuesday it's too early to eliminate the surcharges.

"We've taken a look at it, but fuel prices are still well above what we budgeted for the year," said Michelle Aguayo-Shannon, a spokeswoman for Northwest Airlines Corp. "We're happy fuel prices have come down, but they're still not in a manageable area."

Tim Wagner, a spokesman for American Airlines, the nation's largest carrier, said fuel prices "remain very volatile despite short-term trends."

The spot price for Gulf Coast jet fuel has dropped 22 percent since its early-July peak. But Wagner noted that last week's closing price was still 48 percent higher than a year ago.

Airlines closely watch the fares and fees that competitors charge because they don't like to be priced higher. The result is that when one increases fares or fees, the others often go along.

"We always try to keep our surcharges competitive with the industry, so we'll monitor what those prices are," said Robin Urbanski, a spokeswoman for UAL Corp.'s United Airlines.

That suggests surcharges could fall in a hurry if one of the six so-called legacy airlines steps forward.

Dallas-based Southwest Airlines Co. doesn't have fuel surcharges. But Southwest is among the so-called low-cost carriers. Legacy carriers often waive the fuel surcharge on routes where they compete with Southwest.


Why does your post target UA? As I read this...none of the Legacy US airlines are dropping fuel surcharges.
 

Booker

The Ladies Man
Joined
Apr 5, 2002
Posts
693
Total Time
4100
Why does your post target UA? As I read this...none of the Legacy US airlines are dropping fuel surcharges.

I think it's related to the proximity of the A key to the S key, combined with the typical lack of proofreading found on this message board.
 

Headfake14

646 3A
Joined
Aug 6, 2004
Posts
821
Total Time
10000+
NONE of us should drop the fuel charges. Just because it's nice today, doesn't mean it'll be nice next month. PLUS, ya still gotta pay for the fuel you burned last month since most of us have been losing $$ and are licking wounds.

How about a f%$kng article on whether or not grocery stores, resaurants, Homedepot, KY and beer prices should come down. Everyday items are the first to go up when fuel goes up...my neighbor drives a semi and his fuel bill has doubled in less than a year.

friggin media...."OOO..OOO...Oil is down....Hey airlines, when ya gonna lower prices!"

In my opinion, still none of us are charging what we should be. But, we've managed to raise prices a number of times these past 12 months...and I tell ya what, I've really noticed not as much trailer trash flying and making a damn mess in my cabin.
 

Shrek

Well-known member
Joined
Oct 25, 2005
Posts
1,640
Total Time
10000
NONE of us should drop the fuel charges. Just because it's nice today, doesn't mean it'll be nice next month. PLUS, ya still gotta pay for the fuel you burned last month since most of us have been losing $$ and are licking wounds.

How about a f%$kng article on whether or not grocery stores, resaurants, Homedepot, KY and beer prices should come down. Everyday items are the first to go up when fuel goes up...my neighbor drives a semi and his fuel bill has doubled in less than a year.

friggin media...."OOO..OOO...Oil is down....Hey airlines, when ya gonna lower prices!"

In my opinion, still none of us are charging what we should be. But, we've managed to raise prices a number of times these past 12 months...and I tell ya what, I've really noticed not as much trailer trash flying and making a damn mess in my cabin.

Hit the nail on the head brutha - no pun intended.
:beer:
 

mamba20

Do what now?
Joined
Nov 27, 2004
Posts
1,030
Total Time
000000
Good, keep the fairs high where they should be. I'm tired of the general public thinking that we are bus drivers and that its their god given right to fly for cheap.
 

StopNTSing

Well-known member
Joined
Feb 16, 2003
Posts
715
Total Time
9500+
Well, what do you expect when an airline (or any business, for that matter) takes the gutless route by hiding behind a "Fuel Surcharge" instead of simply increasing the price to cover a legitimate increase in their costs? If it still appears as a separate line item on their bill after the oil markets have recovered (and I'm NOT saying we're there yet!), it seems to me a customer is well within their rights to question why they are still paying for the surcharge.

Example: I needed to have a car shipped across the country two years ago. Diesel fuel prices had a big run-up about six months prior, but had since corrected back to about where they started. My preferred trucking company was still adding a $200 fuel surcharge to their estimate.

I said "Why is that still there? Take it off and the job is yours"

They replied "Sorry, that's the price"

I found another trucking company...

Whereas if they had simply given me an estimate that was $200 higher (no fuel surcharge listed), I would have given them the job based on their past performance.


**Disclaimer**
I know, I know....I work for SWA and have no right to get in the way of a good rant since we have all those pesky fuel hedges that, by god, are gonna run out one of these days.... :rolleyes:
 

Lampshade

Well-known member
Joined
Feb 3, 2002
Posts
485
Total Time
8000
Fuel surcharges are added sometimes to make up for corporate accounts where the airline sold tickets at a a fixed price a long time ago and the only way in some of these contracts to legally increase the price is by adding a fuel surcharge.
 
Top