Oct 20, 2006 (LBO) – SriLankan Airlines says it will consider lowering fuel surcharges on tickets in January if oil prices continue to fall, while it also expands further into Indian metropolitan cities this winter. The airline is currently buying jet fuel at 1.92 dollars a gallon, down from the highs of 2.28 dollars a gallon some months ago, though is still higher than budgeted levels of 1.78 dollars.
“It would be mid November when we see the benefits of the fuel price drop and if the situation holds, it would be around January when we would consider reducing fuel surcharges,” Barry Brown, SriLankan’s Head of Commercial told LBO.
Falling global prices of crude are slow to trickle down to jet fuel due to high global demand and shortage of capacities, keeping aviation fuel at higher price levels.
The airline increased fuel surcharges thrice this year, adding up to 80 dollars on the cost of a long haul, one way ticket and 50 dollars for a shorter run.
Meanwhile, the airline also plans to snap up new flight frequencies Sri Lanka negotiated with India under recent trade talks, to top Indian metropolitan cities.
“We are looking to include Mumbai into our winter plan into India. Mumbai is very vib