Loganair adding fuel surcharge
Regional airline Loganair will add a fuel surcharge on to new ticket sales as global fuel prices continue to rise.
In a presentation to a meeting of the Shetland External Transport Forum, Loganair’s Chief Executive, Jonathan Hinkles, said: “ Loganair has already fixed the price for over 50% of its expected fuel volume for the 12 months from 1 April 2022 using financial hedging instruments. For the remainder of our fuel volume, the rise in global oil prices equates to an additional cost of £4.7 million in the coming year at today’s oil price.”
“It is simply impossible for us to absorb this impact, especially where airlines including Loganair still face significant uncertainty over the pace of recovery in passenger numbers from the pandemic.”
A fuel surcharge on new ticket sales applies from 21 March onwards.
“This isn’t something that we wished to do, nor is it a step that we have taken lightly. Although it will be unwelcome, I trust that this represents a transparent response to worldwide circumstances.”
The surcharge of £3.95 per one-way journey will apply on all new bookings made on routes except for routes flown under Public Service Obligations.
It will be included in the headline price displayed when selecting flights on the Loganair website – but for full clarity, will be shown separately once flights have been selected ‘online basket.’
The airline also laid out the steps for the fuel charge’s removal as and when global oil prices fall.
If the price of Brent Crude Oil falls below $110 per barrel for six consecutive weeks, the surcharge will be halved; if it falls further, below $85 per barrel for six consecutive weeks, then it will be removed completely.
No fuel surcharge will apply to existing bookings already made, the airline said.
Ray Monty
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