Airlines Add Fuel Surcharges as Jet Fuel Prices Climb

By Anna Breuer on 7 June 2018
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DSC_0242As the price of jet fuel continues to climb, airlines are considering increasing the cost of flying by adding fuel surcharges.

Significant fuel surcharges were imposed by airlines in 2008 when oil prices soared to as much as $147 per barrel.

On Wednesday, Delta cut its earnings expectations blaming the “sharp rise” in fuel prices.

Fuel prices are up 50% year over year and 12% in the most recent quarter.

Earlier in the week, Southwest Airlines cut its flight-capacity growth plans for the year and American Airlines said that higher fuel costs could result in higher ticket prices if fuel costs remain at the current level.

Fuel and labor are the two highest expenses for any airline. Meanwhile, the price of an average domestic airline ticket has fallen in each of the past four years, according to Airlines for America, a trade group that represents most U.S. airlines.

(Photo: Accura Media Group)

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