Peter Greenberg: Fuel Surcharges
By: Peter Greenberg | Source: AARP.org | 2009-03-23
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Airlines instituted a "baggage charge" to compensate for raised fuel prices. Cruise ships also attempted to offset some of the "rising fuel" prices by charging a fuel surcharge for each person, etc. Question: Now that oil prices have dropped significantly, do you believe the airlines and cruise companies will continue to "stick it to us"? Thanks.
–Norman, Poway, Calif.
Well, Norman, let's just say I wouldn't hold my breath waiting for any travel companies to drop fuel surcharges.
Airlines say they are coping with a downturn in air travel, and many were hurt financially with the recent fuel-price gyrations. And thanks to fuel hedging, many of them did suffer a financial hit.
Of course, if you want to avoid these surcharges, there are a handful of airlines that either never instituted these fees (like Southwest) or did actually drop them recently (like Air Canada, and, for domestic flights, AirTran and American Airlines).
Internationally, things are better, as most major airlines have now dropped their surcharges, including major players, such as Lufthansa, Singapore Airlines, Aer Lingus, Austrian Airlines, Thai Airways, and many others.
I would expect airlines to continue, slowly, to cut fuel surcharges, but overall ticket prices are unlikely to fall anytime soon.
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