FuelClub Discount

American Airlines on Wednesday raised its fuel surcharge by $20 per round trip, after a failed attempt to raise fares, according to reports.

Spokesman Tim Wagner said the surcharge would apply on domestic routes except those where the carrier competes with low-fare airlines.

American, a subsidiary of Fort Worth, Texas-based AMR Corp. (NYSE: AMR), and several other airlines attempted to raise fares by $20 over the weekend, but failed as some carriers didn’t match the increases.
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Saturday’s unprecedented 20% hike in aviation turbine fuel (ATF) prices has not only made domestic travel more expensive, but the fuel surcharge for international flights is all set to rise sharply as well. While airlines are expected to announce hikes by Tuesday, travel agents said an Indian carrier that flies abroad has already started charging higher surcharge from Sunday midnight itself.

“The fuel surcharge on a return Delhi-London sector flights has increased by almost Rs 1,000 from the earlier figure of Rs 10,390. Other sectors have also gone up but marginally for now. That may change by Tuesday,” said the travel agent. Unlike domestic flights that currently have two fixed levels of surcharge, each international sector has a different cess.

Singapore Airlines said it had recently hiked surcharge. “On India-Singapore sector, the surcharge has gone up from $80 to $95 per ticket. Flying to Australia via Singapore now has a surcharge of $190, up from earlier $160. Flying to US through Singapore now has a surcharge of $245, up from earlier $210,” said Gunjan Chanana, Singapore Airline spokesperson.
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Malaysia Airlines (MAS) will adjust fuel surcharge if oil prices continue to soar as crude oil price skyrocketed towards US$127 per barrel, said executive director and chief financial officer Tengku Datuk Azmil Zahruddin.

“If oil prices continue to increase, then, yes (the fuel surcharge will be increased),” he told a briefing yesterday when asked on the possibility of MAS increasing its fuel surcharge.

Other airlines that recently increased fuel surcharge are British Airways, Thai Airways, American Airlines, United Airlines, Delta Air Lines and Singapore Airlines.
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A fuel surcharge by airlines on North American flights may rile customers, but observers say it was inevitable and may even help carrier earnings in the short run.

WestJet Airlines Ltd. and Porter Airlines slapped a fuel surcharge on all their flights yesterday as the price of oil continues near all-time highs. The move follows a similar levy by Air Canada last week. WestJet customers will now have to pay an additional $20 on short-haul flights, $30 for medium-haul and $45 for long-haul flights. Porter Airlines pegged its increase at $20 one way for the Ottawa-Toronto route, and $40 one way on all other routes.

“We’ve hung on as long as we could, as long as our low-cost structure allowed us, but we’ve now reached that point where we introduced that surcharge, at a level that we think is good for us,” WestJet spokesman Richard Bartram said yesterday.
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