Airlines cut surcharges; BA doesn’t
05.10.08
Cathay Pacific, Thai Airways and El Al have become the latest carriers to cut their fuel surcharges in response to plummeting oil prices, the Times reports. They join Air France, KLM and Singapore Airlines, which have all lowered surcharges in recent weeks. However, it points out that neither BA nor Virgin have followed suit, nor look like doing so.
The price of a barrel of oil has fallen by about a third in the past few weeks amid fears over the global economy. The investment analyst Merrill Lynch has even suggested that the price of a barrel of crude - which hit a record high of $147 in July - will drop to about $50 next year. However, the newspaper suggests that 'British Airways and Virgin passengers, however, are unlikely to benefit.'
BA, which says it has no plans to drop surcharges, is under increasing pressure from the travel industry to incorporate fuel levies into the ticket price, thereby making its pricing more transparent. A spokesman for the airline told the Times that to do so would ‘be a logistical nightmare.'
Virgin says that, despite the drop in oil prices, the market is too volatile for it to drop surcharges yet: A spokesman said: ‘We keep the matter under daily review, but until prices remain low for a sustained period, the surcharge will remain.’
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