Fuel Surcharge going up for International flights

[vt01]

I always thought that one of the main reasons for have a fuel surcharge was to be able to charge it against FF tickets. But then maybe it was just a 'lucky' side affect of the real reason which was to be able to increase fares without increasing the base fare.
I can just imagine the QF meeting.
'now how can we increase revenue without increasing air fares.. One bright star says 'I've got it!' Lets add a surcharge and say it's for fuel increases and that it's not our fault! Then another one stands up and says, and while we're at it, why not make the most of our loyal customers and hit those free FF flights with the surcharge as well! Brilliant - Here have a bonus! What the hell, we all deserve a bonus, we can take it out of the fuel fines - ah I mean surcharges...'

 

[JohnK]

Then another one stands up and says, and while we're at it, why not make the most of our loyal customers and hit those free FF flights with the surcharge as well!

This is one that I find very tough. You try to use your hard earned FF points and they slap on fuel surcharges onto the cost of the award ticket.

Many airlines do not charge fuel surcharges on award tickets even though they have fuel surcharges in place for their airfares.

Brilliant - Here have a bonus! What the hell, we all deserve a bonus, we can take it out of the fuel fines - ah I mean surcharges...'

I can just about imagine this meeting and I would not be surprised if it was not far from reality.

 

[Dave Noble]

I always thought that one of the main reasons for have a fuel surcharge was to be able to charge it against FF tickets. But then maybe it was just a 'lucky' side affect of the real reason which was to be able to increase fares without increasing the base fare.

It also has an impact against corporate discount. If you are a company with, say, a 30% discount rate on K fares, if the fare is $300 plus tax, they would pay $210 plus tax.

Make it $230 plus $70 fuel fine plus tax, then they have to pay $231 plus tax making the real discount 23%

Doesn't just hit FFs but is a way of effectively reducing the discounts and I would suspect that there are more of these than FF passengers

Dave

 

[NM]

It also has an impact against corporate discount. If you are a company with, say, a 30% discount rate on K fares, if the fare is $300 plus tax, they would pay $210 plus tax.

And don't forget the impact on commissions to travel agents - only paid on the base fare.