Drop in oil prices could lower aviation fuel surcharges: report

Consumers may soon see another break from the recent drop in oil prices.

It’s costing less to fill up the gas tank, and now, airline fuel surcharges may also drop in the near future.

The aviation fuel surcharge has been one of those extra fees tacked onto your ticket for, in some cases, over a decade. However, it’s not charged by all of the airlines.

Tony Tyler, director general of the International Air Transport Association, told the Globe and Mail that while aviation fuel prices lag oil prices by about a month — down by about 20 per cent since the early summer — competitive pressures should lead to lower fees.

The recent drop in the price for oil may give the airlines some competitive advantage on the extra fees.

The airlines are cautious in saying anything specific yet. Air Canada told the Globe it’s monitoring the market.

The heads of Delta and Southwest said their fuel costs have come down, but considering the volatility in the oil market, they have to look at it on a long-term basis.

Top Stories

Top Stories

Most Watched Today