AIR FRANCE UPS FUEL SURCHARGE

Dino D'Amore
By Dino D'Amore February 3, 2011 12:19

AIR FRANCE UPS FUEL SURCHARGE

French airline Air France has increased fuel surcharges on its air fares to offset the steep rise in jet fuel. The increase came into effect in February 1. The airline has increases its surcharge by €2 per flight on short-range trips  and medium haul flights, while long-range flights will go up €10 per leg to either €96 or, if the flight lasts for more than seven hours, to €106.
The International Air Transport Association profit for global airlines was estimated at $9.1 billion for 2011, but that was based on the assumption of oil being at $84 a barrel. Recently the price of a barrel of crude has risen above $100.

“Fuel accounts for 27% of [airlines’] operating costs and a sustained rise in the price of oil could spoil the party,” said Iata chief Giovanni Bisignani. “For every dollar increase in the average price of a barrel of oil over the year, airlines face the difficult task of recovering an additional $1.6 billion in costs.”

Dino D'Amore
By Dino D'Amore February 3, 2011 12:19
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