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Oil prices have been dropping for the past few months, so why aren’t fuel surcharges on airfares coming down?


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Companies like profits.

3 ( +3 / -0 )

Easiest question ever: Greed.

4 ( +4 / -0 )

Greed. Often associated with oil.

4 ( +5 / -1 )

Well, greed and the fact that free-market capitalism's willingness to self-regulate is fantastically over-exaggerated in modern society. "Fantastically" meaning it is a fantasy.

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Pocket vampires!

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Most likely because people continue to fly no matter. Still selling tickets why cut the surcharge. More stupidity of the people than greed of the airline.

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I thought surcharge prices had dropped respectively.

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First of all, airline companies tend to pay their fuel in advance, this to prevent any loss from heavy fluctuations. (Fuel hedging)

And obviously they rather want to have consumers to pay more than they have to, though due to competition this will be slowly reduced (slower than the actually drop in oil prices). Though sadly they always manage to rise prices insanely fast when the oil price rise even a little.

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I don't fly much but I did fly NRT-AKL-NRT economy on short notice for about Y165,000 in total which I think is not bad

However I do work in the freight biz & fuel rates for airlines are updated twice a month & they HAVE dropped roughly around 50-60% from say a year ago.................

Maybe JT-ers should consider flying as cargo if you want to save some $$$ haha!!

-1 ( +1 / -2 )

Does the oil price have direct impact on airline fuel surcharge in reality?

Since the airline fuel surcharge is still high where is the low priced oil supply going to? A greater transparency of this low priced oil supply chain end to end might be an eye opener.

Is the drop in the oil prices impacting only few nations (handful of big consumers) instead of the global consumers?

Would be interesting to know the answers to above questions now.

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Oil price goes up, ticket prices go up. Oil price comes down.... nowt.

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Oil prices have been dropping for the past few months, so why aren’t fuel surcharges on airfares coming down?

Why are you asking those not in power? A large majority here who cannot vote in Japan. Why isnt this question put to government?

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oil surcharge did go down... not sure why the question above http://www.bloomberg.com/news/articles/2016-01-18/bye-bye-fuel-surcharge-holidays-in-japan-could-soon-get-cheaper

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In the case of ANA it's gradually going down for flights from Japan, but has already been eliminated for flights to Japan. So in this case ANA are ripping off their Japanese customers.

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Because the greedy capitalists can get away with ripping us off.

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Yet they'll go up the nanosecond market prices go up.

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greed greed greed greed greed greed greed greed greed greed greed greed greed greed greed greed greed greed

-1 ( +0 / -1 )

Airlines have razor thin profit margins anyway so I don't see how people can call it greed or claim that capitalist, free market competition doesn't work. Rather than base claims of greediness on pure conjecture, base it on actual statistical data. Look at profit margins for major industries. Compare profit margins.

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Huh? I'm getting great fares. "Fuel" wasn't even listed as one of the added charges the last time I checked a fare to Canada.

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In the US (many routes) the reason is the lack of competition due to the mergers the last 4 years.

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