business

Cheaper fuel has airlines soaring to record profits

9 Comments
By DAVID KOENIG

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9 Comments
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Flew home to Canada last summer, my ticket cost Y160,000. This summer, Y155,000. Thought for sure that it would be at least 20 % cheaper, but nope. Thanks a lot you money grubbing airline industry.

6 ( +7 / -1 )

Here's hoping the airlines put some of those profits into giving economy class a few more centimeters of legroom.

3 ( +4 / -1 )

The "fuel surcharge" has not been reduced as much as expected. ANA used to claim that when the price went below $60 a barrel the fuel surcharge would be removed. Now they say it must be below Y6000, i.e. $50 a barrel. The whole "fuel surcharge" thing is nothing but a con.

2 ( +2 / -0 )

Scrote: Agreed. And what's worse is that while advertising the drop in fuel charges, which they did not lower as they promised, they jacked up ticket costs to compensate -- hence the massive profits. Such a corrupt industry.

6 ( +7 / -1 )

Also ANA really got with the Abe virtuous cycle by giving its full time workers a 0.47% pay rise and although the summer bonus hasn't come out, you can guess that it will be the same as last year's, which was pretty miserly.

Still who can really blame them? They see the long term writing on the wall. Abenomics is a short term sugar high and once the dankai generation stop traveling through infirmity over the next 5-10 years, the good days are over for ANA. The younger Japanese do not and will not have the cash for travel and ANA is still very dependent on the Japanese, rather than the international, market.

-4 ( +1 / -5 )

fuel surcharge is a con. but airlines have lost money for long time no so seems only right that with drop in costs they start making decent money. Isn't that how capitalism works? for example, iron ore mines in Australia are the other way round.

-5 ( +1 / -6 )

Living in Japan for long time gives me the best example how bad for the average customer is this business model! When fuel prices were going up surcharges and prices went up. And despite the fluctuations of exchange rates and cheaper fuel, air companies here always had what they want. They always waited at least 3 months after dropping fuel prices because of coarse they have bought at higher prices. And of-coarse there were very quick to lift the prices when fuel was up. Add the lack of international low cost carriers and we are always doomed :(

2 ( +2 / -0 )

Remember when the price of fuel was raising and the airlines were using it as an excuse to raise prices even at the hint of an increase (even thought they buy their fuel months in advance) but, now that the price of fuel is dropping, not only do they NOT lower the price of airfare but in most cases raise it to capitalize on "Golden" week and summer vacationers. And now that there is hardly any competition between carriers we are stuck paying through the nose, while their profit margins and baggage charges continue to increase and their amenities and services decrease.

1 ( +1 / -0 )

Hope they use the money to fix the planes better

0 ( +0 / -0 )

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