Will The Price Of Airline Tickets Decrease As The Cost Of Fuel Goes Down?

The decline in worldwide fuel prices will probably make air travel cheaper, although it is unlikely to change the actual price of an air ticket. Instead the fuel surcharge, which is applied to the price of air tickets (along with various taxes and security fees) may very well be reduced by the larger network airlines.

British Airways was the first to announce that it will decrease its fuel surcharge as the price of crude oil fell in late 2006 and early 2007. BA has announced that it will reduce the fuel surcharge on longhaul routes of under 9 hours by £5 each way. This will mean that instead of paying £35 each way on a longhaul BA flight, passengers will only pay £30. The rate change went into effect immediately.

The fuel surcharge for domestic and European routes, however, remains unchanged at £8.

Other airlines, however, have either ruled out decreasing the fuel surcharge, or have indicated that they are yet to make up their mind. For example, Air France-KLM noted that Air France would not be reducing its surcharge, while KLM has yet to take a final decision. Lufthansa also has no immediate plans to reduce the fuel surcharge, but has not ruled this out as a future possibility.