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After seeing the price of oil drop dramatically earlier this year to less than $35 a barrel, the price has been creeping back up to the $70-a-barrel range. With the increase in oil, jet fuel prices rise and we passengers will see higher fuel surcharges.
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As fee increases go, this one is so small as barely to be noticeable. But when travelers are increasingly being hit for charges that can add hundreds of dollars to a family trip, well, every little bit hurts.
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A small international airline, Air New Zealand, has announced the end of fuel surcharges in its pricing. After months of complaints from consumer advocates and recent rumblings in Congress about ticket price transparency, Air New Zealand’s move may be the beginning of the end for fuel surcharges.
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I do understand that times are tough for the airlines. And that I understand the need to make a profit, or at least break even and stay in business. In fact, when I see the ridiculous fares being offered, for example, in markets where the larger airlines, Jet Blue and Virgin America are competing, I worry that none of them will be left standing. But I can’t justify those hidden “fuel surcharges.”
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The price of oil is falling. But not airline fees and fuel surcharges. Although some air carriers have suggested they’ll reduce or eliminate fuel charges in particular, it’s not trickling down to tickets.
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Fuel prices are down. But airline fuel surcharges aren’t on their way out — unless you’re flying to certain European destinations.
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As the price of gas falls, many travelers are wondering when airlines or cruise lines will drop their controversial fuel surcharges or extra fees. The answer may be: never.
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Airlines have been quick to add fuel surcharges during this period of soaring jet fuel costs. But will the changes in the direction of jet fuel prices on the open markets be reflected in fuel surcharge reductions? Already, consumers can see price changes at gasoline pumps.
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