Tue, 09 February 2010  20:02:56
Fuel Mix
28 Mar, 2007 18:11:07
Sri Lankan airlines raises ticket prices by making fuel surcharge permanent
March 28, 2007 (LBO) – Sri Lankan Airlines said Wednesday it will incorporate the fuel surcharge into air fares from April 01, effectively raising ticket prices and ending the possibility of lifting the charge if oil prices fall.
“The airline will implement this change to most destinations with a few exceptions, due to regulatory issues,” SriLankan Airline said in a statement.

“This will enable clarity and simplicity of air fares when quoted to passengers. Government and airport taxes will continue to be collected separately.”

The announcement means the islands national carrier had dropped plans to lower the surcharge, even if oil prices fall further.

Manoj Gunawardena, head of worldwide passenger sales, said in a statement the decision to include the fuel surcharge in the air fare was aimed at having a transparent fares structure in place.

Customers will be quoted a fare inclusive of the fuel surcharge instead of the present practice of quoting it separately.

This move is also in line with the recommendation of IATA, the industry governing body.

In October last year, Sri Lankan Airlines officials told LBO it would consider lowering fuel surcharges in January if oil prices continued to fall.

The airline said at the time it was buying jet fuel at 1.92 dollars a gallon, down from the highs of 2.28 dollars a gallon some months previously, though still higher than budgeted levels of 1.78 dollars.

Falling global prices of crude are slow to trickle down to jet fuel due to high global demand and shortage of capacities.

The airline increased fuel surcharges thrice in 2006, adding up to 80 dollars on the cost of a long haul one way ticket and 50 dollars for a shorter run.

World oil prices surged towards 65 dollars a barrel in London earlier in the week amid political tensions over Iran but have now fallen back to around 62 US dollars a barrel.

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