Tuesday, February 21, 2012

Get Ready For More Fuel Surcharges

Price of crude oil and its derivative, jet fuel touched a 9-months high today. International airlines will not waste anytime hiking their "fuel surcharge" in response, and travelers will likely see higher fares on international travel. Domestic carriers do not add fuel surcharges, they simply raise their fares. It is notable that airlines who are quick to raise their fuel surcharges, do not react as quickly to lower them when the prices go down. At this level, airlines that have not at least hedged part of their fuel purchases have no choice but to raise the surcharge. Recommended Action: If you have an upcoming international trip, have your ticket done now as the surcharge increase cannot be applied retroactively. 2012 is on pace to record a double-digit fare increase over last year, plus you can count on additional ancillary fees that the airlines are standardizing. Most "desirable" seat assignments now carry some sort of fees. www.premieretravel.com