Airlines Add Fuel Surcharges

Airlines Add Fuel Surcharges

As the price of oil continues to rise, so to does the cost of jet fuel for the aviation industry. According to the Air Transportation Association, fuel accounts for about 27% of an airline’s operating costs. In an effort to off-set this increase in the cost of doing business many air carriers are adding fuel surcharges to their ticket prices.

Most all of the major air carriers have followed one another in the price increase. American, Delta and AirTran have increased many route fares by an average of a just less than ten dollars. Continental also added a six dollar increase on Monday according to travel industry reports. Some of the airlines have since rolled the surcharges up into new higher base fares so customers do not see them as an extra charge.

When oil prices were well over $100 per barrel a few years ago, the surcharges became an industry standard. In 2008, when it looked like the high prices were here to stay, the airlines eliminated the surcharge by rolling the fees into increased base rate fares at that time as well.