Airlines Face Calls to Cut Surcharges

The public is clamoring for lower fuel surcharges but it appears that airline companies are slow to react. The sentiment is brought about by a 25-percent fall in jet fuel prices in the last few months.

Flight Centre wonders why airlines are slow to bring down the surcharges when they quickly jack up the price if cost of fuel increases.

Flight Centre said it expects airlines like Virgin Australia and Qantas to bring down the surcharges following the decrease in fuel prices.

The current price is hovering at the US$103-per-barrel mark. This is the lowest level of oil since December 2010. Qantas increased its surcharges last March 2012.

A Qantas passenger would normally pay about $380 for a one-way ticket to London. Virgin, meanwhile, charges a little more than $310 for a one-way ticket to the US.

There is no reason for airlines not to bring down the surcharges. The strong Australian dollar is providing some cushion for airline companies since they buy fuel in US dollars.

It also makes wise business sense to lower surcharges because of passengers’ increasing shift to competing carriers that do not require extra charges.

A Qantas spokesman, meanwhile, said the company is regularly monitoring the jet fuel market. And while the company adjusts plane fares as necessary, it does not speculate publicly on what could happen in the near future.

Virgin Australia, on the other hand, said the company remains committed in balancing the need to provide competitive plane fares with the operational expenses of the business.