Airlines ‘failing to pass on fuel price savings’

AIRLINES have failed to pass on the plunge in fuel costs to passengers, experts said last night.

The price of oil, which is used to make aviation fuel, has plunged from well over $100 a barrel to just $35 a barrel.

But carriers have effectively kept in place the fuel surcharges they introduced in 2004 – when oil broke through the $40 threshold. The levy is now a ‘carrier imposed charge’.

Brought in by stealth over the past 12 months, it is thought to cover jet fuel and other unspecified items.

Critics of the surcharge said it was akin to a supermarket adding a ‘wheat fee’ to the cost of a loaf. ‘At a time when fuel prices have hit a real low, consumers are completely justified to ask why airlines are not dropping prices and passing on some of the savings,’ said Bob Atkinson, of TravelSupermarket.com.

‘Airlines are back making huge profits partly at the expense of us, the traveller who is not benefiting from cost reductions to the operators.

‘We deserve better fares just as much as the improved aircraft they tell us they are spend- ing the money on.’ The airlines have also been challenged to cut fares by politicians and the United Federation of Travel Agents’ Associations.

Profits at IAG, the parent company of British Airways, recently revealed its profits had soared by 65 per cent in 2015 to £1.8billion.

BA applies a ‘carrier imposed charge’ of £143 a head on flights to New York in the summer.

A family of four would be billed £3,883. American Air- lines, which is a partner of BA, imposes the same fee.

And exactly the same charge is applied by Virgin Atlantic, Delta and Lufthansa. Air France charges £130 a head but Thomas Cook has no fee at all.

It is not clear what the levy covers since airport services, customs, immigration fees and taxes are charged separately.

The Civil Aviation Authority, which polices the industry, said: ‘It is vital airlines display air fares transparently so passengers can compare prices and make informed choices when booking their flights.

‘It is up to each individual airline to decide whether to impose a fuel surcharge and if they do, how much that should be.’

BA confirmed that while it had ended fuel surcharges on flights out of the UK and Europe it did now have a ‘carrier imposed charge’.

It refused to say what it covered, adding: ‘We always quote fares inclusive of all taxes, fees and charges. Carrier imposed charges were introduced in October last year in response to a variety of factors.

‘These include changing industry practices and to be consistent with changes that have been in place for flights originating in the USA for a number of years.’

The airline industry body, IATA, said: ‘Airlines have cut fares in response to falling oil prices. Average return fares fell around 5 per cent worldwide last year. Average fares have fallen 57 per cent in real terms since 1995.’

‘Huge profits at our expense’