With singapore jet fuell prices dropping, will QF drop the fuel fines?

[el_rooto]

Hi all,

With the price of jet fuel falling, will QF be likely to drop the fuel fines on domestic and international flights?

This is a chart of what the price has been doing, have a look at the 5 year one for a comparison.

Bloomberg Singapore Jet Kerosene fob Spot Cargo Price (JETKSIFC:IND) Index Performance - Bloomberg

 

[Blackadder]

At a guess along with the other airlines that have a fuel surcharge, no.

 

[casanovawa]

I was thinking about this recently and was wondering what the trigger points in the jet fuel price for the last couple of surcharge hikes were and whether if we knew people would be able to complain more knowledgeably if the jet fuel price dropped to those levels again about reducing or eliminating the surcharges imposed...

But my guess is that companies (banks in particular) always hike fees/charges/etc a lot quicker than they drop them... Strange that eh...

 

[el_rooto]

I was thinking about this recently and was wondering what the trigger points in the jet fuel price for the last couple of surcharge hikes were and whether if we knew people would be able to complain more knowledgeably if the jet fuel price dropped to those levels again about reducing or eliminating the surcharges imposed...

But my guess is that companies (banks in particular) always hike fees/charges/etc a lot quicker than they drop them... Strange that eh...

When I get to uni on tuesday I'll check the jet fuel prices in AUD as well and get the dates of the increase announcements and check them.

 

[casanovawa]

Good work el_rooto

 

[JetLagged]

Much like the price of petrol in general:

1. Price of crude rises - petrol prices rise
2. Price of crude falls - patrol prices don't fall
3. Australian dollar falls - petrol prises rise
4. Australian dollar rises - petrol prices don't fall

Now, I wonder, if anyone wants to connect the dots here?

 

[ozmille]

What I still don't get after living here for 4 years is how petrol prices can change every week between the Sunday and the Wednesday by about 10 cents...


Sent from my iPad using Aust Freq Fly app

 

[Vinny]

I booked a J RTW award ticket earlier in the year. Taxes, or read mostly fuel fines were just over $500.

Recently booked a J award trip to Europe. Result over $1 100. Two QF sectors. Other carriers AA, BA, CX.

I'm not sure of the breakdown of what money goes where but I'm sure a lot of it goes toward fuel fines. To be fair, I will again only have two QF sectors. Other carriers BA and CX.

 

[drewbles]

Don't forget that airlines hedge their fuel pricing for extended periods. It may be that it's tiered to be certain amounts over a certain period, but hypothetically, if fuel fell 50% in price overnight, most airlines will have hedging ensuring their price remains high until that hedged period is over.

A lot of companies do the same in currency where they are multi-national, to avoid exposure to sudden dips and gains in forex.

 

[ric_melb]

The high petrol price of the week is what the companies really want to get. The price reduces as companies try to get more market share, even though they all seem to end up at the same price. Consumers win if they buy at the cheap price in the cycle.

 

[Vinny]

The high petrol price of the week is what the companies really want to get. The price reduces as companies try to get more market share, even though they all seem to end up at the same price. Consumers win if they buy at the cheap price in the cycle.

And this is precisely the reason why we rarely shop at Coles or Woollies and make a conscious effort to avoid their petrol stations. An independent fuel operator nearby is usually cheaper so they get my business. If other people avoided the big two and their attempts at domination of the fuel retail industry there would be some competition.

Prices this weekend ranged from 153c per litre at Caltex, compared to 137c at the independant. I live in a tourist town with a major event this weekend.

Anyway, roaming off topic.

Redroo might want to explain why fuel fines are separate from ticket prices and in no way reflect the current oil prices.

 

[Happy Trails]

I have it on good authority that fuel surcharges will be reviewed once they have sorted out priority boarding.

 

[Vinny]

I just sent a PM to Redroo to answer the question just so we all know.

 

[JetLagged]

I have it on good authority that fuel surcharges will be reviewed once they have sorted out priority boarding.

Hmm: add to the growing to-do list: buy cold weather outfit: hell is going to be cold before this happens!

 

[drewbles]

As I said, Hedging. Anyone not willing to consider that as an option? Perhaps QF hedged badly (not trying to defend fuel fines, they're an absolute rip off, but if they're hedged badly, it's certainly not going to assist in lowering costs when the fuel prices fall).

 

[Alanslegal]

Redroo might want to explain why fuel fines are separate from ticket prices and in no way reflect the current oil prices.

It's absurd that airlines seems to get away with these types of pricing whilst all other businesses have to show all inclusive pricing.

Imagine your local Bakers Delight selling hot cross buns at $4.00 per dozen plus a $0.50 for flour surcharges.

 

[straitman]

As I said, Hedging. Anyone not willing to consider that as an option? Perhaps QF hedged badly (not trying to defend fuel fines, they're an absolute rip off, but if they're hedged badly, it's certainly not going to assist in lowering costs when the fuel prices fall).

Drewbles,

I get it even if some others do not.

 

[mannej]

Here is an example of a fuel hedge go bad...

Cathay Pacific fuel hedge losses nearly $1 billion - MarketWatch

 

[medhead]

TAPIS crude price is holding up nicely. The graph linked in the OP hardly shows a massive decrease in price. The question seems wrong. There doesn't seem to be a major drop in price, notwithstanding that hedging is vastly more important an issue. In fact given the graph in the OP, sharp rise in about april, I wouldn't be surprised if qantas have hedged at a price lower than the current price