What goes up occasionally DOES come down
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While oil is still comparably higher than it was two or three years ago, it has pulled back nearly 20% from its recent highs. Airline fuel surcharges haven’t all fallen to earth by the same measure.
Two notable exceptions are Air France-KLM and El Al. KLM reduced their surcharge by 5 euros each way, while El Al cut theirs by $14 each way. Other airlines have been resistant, and others have even raised their surcharges in the past two weeks, despite the drop in fuel prices.
The entire practice is a sham. If the cost of doing business has increased as a result of fuel expenses, then the change should be reflected in the base fare. Call it a fare hike - which is what it is.
But the airlines like to be able to quote “base fares.” They have been able to game the system by quoting prices with “taxes and fees” extra. And now we see that airlines are illegally colluding to use fuel surcharges to keep prices higher: Two British Airways executives resigned over an investigation into the company’s surcharge practices.
To see anyone actually reducing the surcharge is refreshing and welcome, so hats off to Air France-KLM and El Al. But we can do better. Let’s aim for greater price transparency. Let’s get rid of fuel surcharges.
(image: DrunkatNYU)






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