Airlines fuel surcharges far outpaces fuel prices

If you’ve been pricing flights at all since the first of the year, you’ve probably noticed fares have been ascending. The major airlines, including Delta, United and American, have collectively attempted to raise fares at least six times this year already, and have succeeded on half of those attempts. In most instances, the airlines have pegged the increases to rising fuel prices; a line of reasoning most Americans can at least begrudgingly accept considering they rising prices they’ve seen at the pumps in recent years. But a new study out by corporate travel management company Carson Wagonlit Travel shows fuel surcharges—those fees that airlines say increase ticket prices to compensate for higher fuel costs—have risen twice as fast as fuel prices over the last year. Since April 2011, fuel surcharges by U.S. airlines have risen 53%, while fuel prices have increased 24%, according to the study. Fuel surcharges can represent an increase of as much as 50% on ticket prices, depending on the airline and the destination. The highest fuel surcharges are typically added to international flights. What’s more, most airlines have not reduced fuel surcharges since 2009, despite drops in fuel prices over that time. In the past, fuel surcharges represented a marketing advantage because airlines could raise those fees but continue to advertise low base fares. But a new law that requires U.S.-based airlines to advertise the full fare, including fees and taxes, has eliminated a key rationale for the surcharge. The Los Angeles Times has the full story here.