Our own Christopher Elliott posted an entry about how airlines should lower fuel surcharges now that fuel prices have gone down. Apparently, he’s not the only one that feels that way.
According to the Associated Press, New Jersey Senator Robert Menendez is calling on the airlines to “discontinue the surcharges and other fuel-related fees, rather than use them to expand profits.”
Last week, jet fuel fell to an average of $2.34 a gallon, compared to a $4.33 average in July; crude oil, from which jet fuel is refined, dropped to $74.25, compared to $147.27 in July.
While Menendez understands that the airlines need to recoup the losses, he said that the airlines should roll back prices so that families aren’t “priced out of traveling” with the holidays just around the corner.
Gerard Arpey, American Airlines’ chief executive, said on October 15 that it would be “shortsighted to conclude that fuel prices, which remain volatile, are no longer a challenge.” Other airline executives echo that sentiment.
David Castelveter, spokesman for the Air Transport Association, a trade group representing major domestic airlines said “the decision on surcharges will be dictated by competition in the marketplace among individual airlines.” He noted that increases in fuel surcharges occurred over a number of months while oil prices only dropped within the last few weeks.
Castelveter added said that the US airline industry “continues to operate with uncertainty,” noting “we’re going to lose several billion dollars this year.”
Speaking at a news conference at Newark Liberty Airport on Tuesday morning, Senator Menendez said that airlines need to disclose the fees they are charging to the consumers. He would rather see the airlines increase fares to survive rather than have a collection of confusing and hidden fees.
