Airfare Still Climbs Despite Descending Jet Fuel Prices November 3, 2008
Posted by Bryan Connelly in : General, JetShare, News & Events, Travel, Uncategorized , trackbackA bit of relief was felt at the gas pump recently; even the cost of jet fuel is lower. Unfortunately, it is not getting cheaper to fly—in fact it is becoming more expensive than ever. Surcharges have been tacked on since airlines began cutting capacity and routes in reaction to the gigantic fuel prices a few months ago. This is supposed to alleviate the economic peril carriers are facing, and while prices at the pump are slightly better, the overall cost to travel has not yet descended.
The numerous charges are beginning to dictate how and where we travel. A round-trip international vacation would cost thousands of dollars and hundreds more due to various fees. Fuel surcharges are beginning to double an otherwise affordable airfare. Thai Airways’ cheapest Los Angeles to Bangkok tickets last week had a $542 USD fuel surcharges, and round-trip tickets are $352 USD more than the airline charged year ago.
Despite lower jet-fuel prices, fuel surcharges in international tickets are much higher than a year ago. According to USA Today many routes have doubled in price and many tickets on shorter flights—which often burn less fuel—have higher surcharges than longer-distance flights.
Airlines reported that these charges added to fares over the past year did not cover their costs when fuel prices were much higher and that collectively, they will still lose billions of dollars this year. Prices of fuel have risen significantly for months and dropped only recently. These fuel fees, plus new service fees and increases in airfare have frustrated many travelers.
Larger companies’ fuel prices may add $10 million to $20 million USD per year in traveler expenses. This has even attracted attention from Congress. Senator Bob Menendez (D-NJ) wrote to 11 U.S. airline CEO’s calling on them to reduce fuel surcharges as soon as possible because jet fuel prices have dropped from $4.34 per gallon on July 2, to 2.34 per gallon on October 2.
Air travelers are still paying hefty fuel surcharges on round-trip tickets despite recent declines in jet fuel prices. Airfare expert Tom Parsons predicts that the times will get better but will take some time in between. “Fuel surcharges are expected to drop further because of a weakening Euro. European consumers will pressure European airlines to reduce fuel surcharges, and U.S. carriers will match their foreign competitors.†For a more domestic vacation chose a city or mountain top that is driving distance and still far from home. Find the perfect resort to stay, rent or buy at BuyATimeshare.com and tailor your next vacation to a budget of your choosing.
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