The Hindu Business Line : Lufthansa lowers fuel surcharge

With the global fuel prices decreasing, the German airline Lufthansa on Thursday announced a $100 reduction in the fuel surcharge for a passenger taking a round trip journey to the US or Canada.

“Passengers who were previously paying $420 as fuel surcharge for a round ticket from India to any Lufthansa destination in the US or Canada will now be charged $320,” the airline said in a statement. A spokesperson said that the decision had been taken for “commercial reasons”.

Earlier this week, Singapore Airline announced a reduction of $20 or Rs 800 in the fuel surcharge that a passenger taking a return journey between India and Singapore will have to pay.

A spokesperson for the Dubai-based Emirates said that the airline had revised its fares for tickets issued in select markets reflecting the recent softening of fuel prices. The airline offers a total fare to the passenger and does not break it into a basic fare and fuel surcharge.

“Although fuel prices have fallen gradually in recent weeks, it is still some 60 per cent above the average price per barrel in 2007. High fuel prices continue to be a big challenge for Emirates, and we are monitoring the situation closely. We are studying our pricing systems for India and will take a decision accordingly,” the spokesperson said.

While some international airlines have reduced the fuel surcharge or prices, airlines from India may not be in a position to immediately pass on the benefit of global oil prices coming down.

“The price of the fuel which airlines from India buy is fixed on the first day of the month. Globally airlines pay the price of the day and can, therefore, pass on any reduction in costs to the customer. Besides the domestic base price of oil here is higher so whether is the question of reducing either prices or surcharges,” argued a senior airline official.