Oil price drop and surcharges

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pomjim

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Now that oil has dropped to it's lowest price in 6 months, can we expect the airlines to start dropping the petrol surcharge they put on tickets to drop also.

Or am I just living in a dreamworld?
 
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oz_mark

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I think it is a pipe dream for the moment. But some airlines have started to reduce the surcharge on freight, so you never know
 

NM

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pomjim said:
... start dropping the petrol surcharge ...
I am not aware of Qantas operating any petrol-driven aircraft in their fleet.

However, Qantas have come out in the media stating that even with the revenue generated by the fuel surcharges they will still be many millions of dollars behind their budgeted fuel expenditure for the year. So I do not expect to see the removal of the fuel surcharge until one or more things hapen:
[*]their fuel spend comes back within the budgte level
[*]they start a new financial year with a revised fuel budget based on realistic fuel prices
[*]competative pressures from other airlines reducing/removing fuel surcharges
 
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