SQ fuel Surcharge

[flyguy]

With oil prices coming down from the highs of US$147 to around $126 since some 2 weeks plus, when do u think SQ will reduce its fuel surcharges which it hiked up twice in the last couple of months. Even local retail petrol pump prices have come down 3 imes.

[upright man]

Yes, crude oil prices have come down, but apparently jet fuel is priced higher
(at about US$180 per barrel ?) and has not come down much ?
(Don't quote me, I didn't do any research on this.)
I'm hoping SQ fuel surcharges are reduced too as I'm making a redemption soon.

[SQflyergirl]

There's an announcement due today i believe.

[jhm]

Yes, crude oil prices have come down, but apparently jet fuel is priced higher (at about US$180 per barrel ?) and has not come down much ?

It also depends on what price (and for how long) SQ have hedged their fuel requirements so you can't simply look at the current spot rate and say that's the price SQ is now paying.

[Kiwi]

Airlines are very slow to reduce fuel surcharges (if at all)

[EWR]

It also depends on what price (and for how long) SQ have hedged their fuel requirements so you can't simply look at the current spot rate and say that's the price SQ is now paying.

Well, but apparently, SQ does look at the current spot rate when they decide to raise their fuel surcharge, no? (At least current prices were always quoted and then used as a reason)

[jhm]

Well, but apparently, SQ does look at the current spot rate when they decide to raise their fuel surcharge, no? (At least current prices were always quoted and then used as a reason)

Exactly.

[SuperJonJon]

Apparently aviation fuel prices have only reduced by 4.7%

Source

[manicstreak]

yeah, crude prices shouldn't be taken as an indication of the fuel cost for airlines. If you look at the crack spread now, the differential between crude and aviation fuel has actually going up, especially now with crude dropping faster than aviation fuel, which is a fairly demand-inelastic product, given that only airlines need it and it's a relatively small market.

[N_Architect]

In the next few days I'll be confirming a booking for ICN-DEL-PVG (Jan '09).

TA in PUS advised me today that CX will impose (from Aug 11th) an increase in currently quoted and provisionally booked fare price (approx $ 150 extra that is, for fuel surcharge). They additionally advised that for SQ (on exactly the same itinerary) change in fare price due to fuel surcharge will be from Sept. 1st.

[wsssaero]

If you want to look at it negatively, it might just be that airlines jump on a chance to earn more by adding fuel surcharge, then only reduce it when absolutely necessary. If I owned an airline, I guess I would do that too.

[EWR]

If you want to look at it negatively, it might just be that airlines jump on a chance to earn more by adding fuel surcharge, then only reduce it when absolutely necessary. If I owned an airline, I guess I would do that too.

Precisely. I'm not saying SQ does this, but some (full service) airlines have fare half that of their fuel surcharge between certain cities. It's getting ridiculous. And IIRC, SQ has only lowered their fuel surcharge once (by a few dollars per sector)

[inix]

Actually, I personally tend to believe that SQ's fuel surcharge is already considered the more reasonable one. Especially after looking at TG, QF and BA, which are plain extorbident. They might offer really low fares at times, but post-tax, they certainly arn't cheap!

[EWR]

Actually, I personally tend to believe that SQ's fuel surcharge is already considered the more reasonable one. Especially after looking at TG, QF and BA, which are plain extorbident. They might offer really low fares at times, but post-tax, they certainly arn't cheap!

But that's because for, at least TG, the calculations are based on two sectors one way (SIN-BKK; BKK-wherever), whereas it's only one for SQ.

[sqdazz]

OK guys - oil is now at around $108..... lowest since i think about april......
WILL THE FUEL SURCHARGES COME DOWN SOON!?!?! any thoughts......