Agents accuse airlines of ‘shameless misuse’ of fuel surcharges

Monday, 15 Sep, 2015 0

A leading travel agency group has written to the international airline body IATA to ask why carriers are continuing to add fuel surcharges to ticket prices when the cost of fuel has plunged.

The United Federation of Travel Agents Associations pointed out that the cost of a barrel of oil has fallen from over $110 last year to $40, yet most airlines are continue to charge an additional $25 to $450 per ticket for fuel.

In an open letter to IATA, it claimed that IATA’s own sources had estimated airlines’ fuel bills would fall this year by $4 billion.

UFTAA pointed out that that the special YQ code on airline tickets was introduced to allow airlines to surcharge when there was a sudden increase in oil prices.

"Generally the cost for the fuel should as soon as convenient be included in the general operation cost e.g. air fare ( no air-plane can fly without fuel )," it wrote. "However, airlines continue totally shameless to misuse this ticketing loophole and thus manipulating the transparency of the ticket price.

"The ‘tax box’ on the tickets has increasingly become a vehicle for various extra charges not included in the basic air fare either to distort the price transparency or perhaps to serve as a loophole for tax evasion?" it added.

"How long will this charade be tolerated by the consumers?"



 

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Linsey McNeill

Editor Linsey McNeill has been writing about travel for more than three decades. Bylines include The Times, Telegraph, Observer, Guardian and Which? plus the South China Morning Post. She also shares insider tips on thetraveljournalist.co.uk



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