Air ticket prices rising on back of oil price spike

CEAT Kelani Holdings Managing Director Ravi Dadlani (right) and Lanka Ashok Leyland CEO Umesh Gautham exchange the OEM agreement

PARIS, April 27, 2006 (AFP) – Air France-KLM, Singapore Airlines and a string of other carriers are increasing the fuel surcharge element in their long-haul ticket prices, again passing on to passengers the rising cost of aviation fuel. The airlines justify the price hikes by the recent surge in crude prices, sparked by fears that the international crisis over Tehran’s nuclear programme could trigger disruptions in supplies from Iran, the world’s fourth largest oil producer.

The price of crude hit an all-time high of over 75 dollars a barrel on April 21. In early afternoon trading in New York on Wednesday it was changing hands at 72.15 dollars a barrel.

Singapore Airlines announced on Wednesday it was slapping an extra 10 dollars (eight euros) onto the price of certain long-haul flights.

Air France will on Saturday raise its fuel surcharge by seven euros (8.7 dollars) — the sixth increase since the carrier introduced a fuel supplement in May 2004.

That puts Air France’s fuel surcharge up to 51 euros per one-way long-haul flight, from 44 euros. And since most travellers buy return tickets, the result is a surcharge of 102 euros per round trip.

Dutch carrier KLM, which was bought by Air France in 2004, upped its fuel

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