When global oil prices started declining many airlines were asked if they would reduce or remove the fuel surcharges, and consequently the prices of air tickets. Almost all replied in the negative at that time. However, now a number of airlines have done so.
Virgin Australia incorporated fuel costs into the base fare on its flights to the U.S. (read TravelWeekly Asia’s story here). Meanwhile, Qantas Airways Ltd said it was restructuring its international tariffs to absorb fuel surcharges into the base fares.
Philippines’ Cebu Pacific and Cathay Pacific are among the carriers who have removed the fuel surcharge. Japan Airlines will be the next to follow from 1 February, while Qatar Airways indicated it too would cut the surcharge.
In Malaysia community airline, Firefly, and hybrid carrier, Malindo Air, have removed their fuel surcharges in line with the fallin oil prices – the former on 17 January and the latter last November for its international flights. National carrier Malaysia Airlines, however, has yet to say if it would go in this direction.
Tony Fernandes: Fuel surcharge removal is to help boost ASEAN travel. (Image credit: AirAsia)
The AirAsia group has also decided to do the same, with all of its airlines – AirAsia, AirAsia X, Thai AirAsia X and Indonesia AirAsia X – abolishing fuel surcharge with effect from today (25 January).
According to the company, the move was not only due to the drop in oil prices but also part of the ongoing effort by the airline group to boost travel within ASEAN.
Tan Sri Tony Fernandes, AirAsia’s group chief executive officer, said the decision was made in November 2014.
“However, we are only able to implement it now but we believe removing fuel surcharge and reducing travel costs will be a huge boost to the tourism industry. This will be a plus point for consumers, but the economy will also benefit from this as the tourism industry is a great job creator.”
The abolishment of fuel surcharge will further reduce travel costs and stimulate more demand for travel and tourism, said AirAsia. Fares for a one-way ticket for domestic flights could cost from as low as RM19 (US$5.25), and and international flights from RM49.
AirAsia was the first airline to abolish fuel surcharge for all its domestic and international flights in 2008. However, rocketing fuel prices forced the airline to re-introduce fuel surcharge into its fares in 2011.
• Featured image credit (AirAsia Airbus A320): AirAsia
