SQ fuel Surcharge

[flyguy]

still no news of fuel surcharge reduction despite oil costs came down more than a month ago.

[lee_apromise]

I just paid around A$620 for fuel surcharge for BNE-SIN-ICN-SIN-SYD.... unbelievable.

[sqdazz]

Just reading El Al, Air France, Vietnam Airlines and Taiwan's domestic airlines all planning to reduce fuel surcharges this month. Hope this trend continues with SQ (and TG for that matter)

[SQ LPP]

Have you found from historical patterns that surcharges are as flexible upward as downward?

Would it be possible future markets and hedging becoming a factor as well in fuel surcharge decision?

Gosh, my economic skills has been forgotten.

[jjpb3]

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

Have you found from historical patterns that surcharges are as flexible upward as downward?

[dsim]

i have been looking at kch-sin-icn return since last month for departures in nov/dec. the surcharge (excluding airport tax) has moved from approx RM1010 (early august-08) to RM1088 (as of today) / pax return. ie. YQ has increased RM78 (USD23).

Fare 1,500.00 x 2 Adults MYR 3,000.00
Fare 1,125.00 x 2 Children MYR 2,250.00

Singapore Airport Tax MYR 204.00
Korean Airport Tax MYR 352.00
Malaysian Airport Tax MYR 204.00

Fuel and Insurance Surcharges MYR 4,352.00

Total Price MYR 10,362.00 (for 2A2C)

[sqdazz]

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

[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.

[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]

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)

[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.

[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.

[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.

[SuperJonJon]

Apparently aviation fuel prices have only reduced by 4.7%

Source

[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.