Airlines use fluctuating jet fuel prices as an excuse to milk passengers

Travel research conducted by the NRMA has claimed that international airlines have used fluctuating jet fuel prices as an excuse to over-charge passengers. 

The findings revealed that passengers are being asked to pay $75 more than they should for a one-way airfare to Europe.

From May 2004 to 27 May 2009, the cost of a barrel of jet fuel increased by 33 percent ($64 to $85) yet passengers on a one-way ticket to Europe were subjected to a 533 percent fuel surcharge increase ($15 to $95) over the same period.

The price of jet fuel then returned to $76 a barrel in March this year after reaching a high of $134 in October 2008.

Despite the significant fall in jet fuel prices, the NRMA research found that passengers traveling on one-way flights to Europe are now being forced to fork out a $95 surcharge.
 
NRMA Group CEO Tony Stuart described the 533 percent increase in the fuel surcharge as ‘ridiculous’.

 “It’s bad enough that Australians are confronted with wild price fluctuations when they fill up their car on the ground, they should not be subjected to it in the air too.

“Nobody begrudges the airlines for passing on the cost associated with rising fuel costs, but the airlines are using the fuel surcharge as either a means to line their  pockets or as an umbrella to hide other costs associated with air travel.

“These numbers don’t add up. Australians have every right to ask why they are paying a $95 fuel surcharge for a flight to Europe when the airlines are paying $85 a barrel for jet fuel.”

A comparison of six international carriers found the fuel surcharge varied from $0 to $277.40 for a one-way trip to Europe.

“We are pleased the surcharge fell after reaching its peak but it has not fallen enough, if the airlines were serious about charging passengers a fair fuel charge the increase on a one-way ticket to Europe should be no more than $20,” Mr Stuart said.

“The NRMA is urging the public to shop around to make sure they are getting the best fare and are aware of all the surcharges and taxes they are paying.”

NRMA has invested more than $275 million over the last four years in businesses including Thrifty Car Rentals, Travelodge Hotels and NRMA holiday parks.