Oil is down, but U.S. airlines’ fuel surcharges and fees aren’t. Of course, the relationship isn’t linear. After all, fuel isn’t their only expense. And even if we limit discussion to the fuel, airlines hedge the cost, and sometimes, they screw up. Even Southwest wasn’t immune, registering its first quarterly loss in 17 years.
Now, Senator Bob Menendez of New Jersey is getting in on the act of criticizing the industry, calling on the airlines to drop the fees and surcharges. An excerpt:
“I understand that you need to recoup the losses incurred while prices were rising, and that the economic downturn is impacting your industry,” Senator Menendez wrote. “But American families are struggling as well, dealing with job losses, falling home values, and a financial market that is erasing their retirement savings. It is crucial that you pass on the savings seen from falling fuel prices as quickly as possible.”
He added, “Now is not the time for Americans to be priced out of traveling — that is simply unfair to families who want to spend the holidays with their loved ones and it is bad for our economy in need of a boost.”
Sure, it may be grandstanding, but it’s not coming out of the blue. People see the price of gasoline dropping, but air travel hasn’t gotten any cheaper. And travelers are pissed off.
Will one senator’s pronouncements affect anything? Don’t count on it. Airlines are free to set their prices, and set their prices they will. Where Menendez and his colleagues in the upper house might have some sway is here:
Senator Menendez, who held a news conference this morning at Newark Airport, said consumers at least were owed some clarity from the airlines about the fees they were paying on their tickets. The federal government does not require airlines to follow a uniform method in disclosing those fees on their Web sites. Some airlines state them up front as part of the ticket price, while others quote the fare separately and add the fees before a purchase is completed.
Amen to that. Prices can go up and can go down, but they need to be transparent.
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October 21st, 2008 at 1:47 pm
I agree. And actually I sympathize with the airlines somewhat. It’s basic economics. There is just more demand at this time of year for air travel so prices will rise. They need to make money like any businesses. However 100% behind you about the transparent fees. God, that winds me up.
Love the site. Thanks.
Jane
October 21st, 2008 at 10:38 pm
I also sympathize with the airlines, but they made their bed. They implemented these surcharges and cited one one factor in doing so — the rising cost of fuel. So, it only makes sense that the declining price of fuel would cause the surcharges to decline or disappear. Airlines are for the most part run by reactionary idiots with no vision for the future. So, my sympathy is extremely limited.