Fuel hike: Airlines jack up overseas air fares – Investigation

Published On: February 16, 2011, 12:22 pm
Author: Aliuniyi lawal
-- (m) at 16-02-2011 12:22PM

(1374 | Gistmaniac)

Foreign airlines operating in Nigeria have considerably raised their passenger fuel surcharge, thereby, making flying abroad costlier.

A fuel surcharge is an extra fee that is added to a passenger’s air fare to cover the cost of higher fuel price.

The development, which came to light two weeks ago, followed the surge in the price of Brent Crude in the international market.

A fortnight ago, the price of the commodity crossed the $100 a barrel mark for the first time in over two years, following the political turmoil in the Middle East.

Airlines are consequently passing on the price differential to passengers by adding the fuel surcharge cost to the price of tickets. This situation is currently making it hard for the airlines to honour ticket prices for more than a month ahead.

Fuel accounts for one-third of an airline’s operating cost and is the second-highest expenditure in the aviation industry next to labour.

Findings by our correspondent show that the foreign airlines in Nigeria, which have increased their fuel surcharge are British Airways, AirFrance, South African Airways, Kenya Airways, Ethiopian Airlines, Delta Airlines and Lufthansa German Airlines.

Since February 8, the surcharge for British Airways’ economy class flights lasting longer than nine hours had risen from £152 (N36,328) per person to £176 (N42,064). Surcharge on return tickets for flights lasting less than nine hours, including routes such as Lagos-London, rose from £126 (N30,114) to £150 (N35,850).

However, business and first class passengers are expected to pay more.

The increase in fuel surcharge is, however, not limited to Nigeria as the Associated Press reported recently that British Airways had increased its fuel surcharge for the second time in two months. The £24 (N5,736) increase in fuel surcharge on a return ticket followed a £20 (N4,780) increase in December.

Air France, at about the same time, announced the increment of its fuel surcharge on fares to offset the rise in aviation fuel costs. A spokeswoman for the French flag carrier said the increase took effect on February 1, 2011.

Following the increase, fuel surcharge on the Lagos-Paris flight, which lasts over five hours, was consequently raised to ¤96 (N19,488) from ¤86 (17,458).

Similarly, South African Airways increased its fuel surcharge by between $10 and $60 for a return ticket from January 27, with the Lagos-Johannesburg route attracting the maximum surcharge.

According to travel agents, British Airways’ Lagos-London average return ticket has increased from about N186,000 to N192,000 as a result of the fuel surcharge.

Also, Air France’s Lagos-Paris return ticket has increased from about N171,000 to N174,000.

For South African Airways, an average return ticket has increased from an average of N125,000 to N135,000.

Two weeks ago, Ethiopian Airlines, Delta Airlines, Lufthansa and Kenya Airways, which operate in Nigeria, reportedly raised their fuel surcharges.

The International Air Transport Association estimates that the global airline industry will have to pay an extra $34bn for fuel this year at the current prices.

The domestic airlines had similarly raised their fares last month, following a 12 per cent increase in the price of Jet A1, also known as aviation fuel, by oil marketers.

The Chairman, Airlines Operators of Nigeria, the umbrella body of the domestic airlines, Dr. Steve Mahonwu, said that the oil marketers had increased the price of aviation fuel from N108 per litre to N140.

-- pholake (f) at 16-02-2011 12:31PM
(1771 | Gistmaniac)

Is it the fault of the airline operators? What's the government doing about this recurring fuel palaver? Now, the passengers have to bear the consequences! May God help us.
-- giftmurphy (f) at 17-02-2011 11:52PM
(19042 | Hero)

-- chicco77 (f) at 6-09-2012 10:04PM
(21893 | Addicted Hero)

 Roll Eyes Roll Eyes Roll Eyes Roll Eyes Roll Eyes Roll Eyes
-- PoliticxGuru (m) at 24-08-2015 03:29PM
(14171 | Hero)



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