AirAsia fuel fee stays for time being

News in Asia
AirAsia fuel fee stays for time being

The CEO of AirAsia says there are no plans afoot to reduce the fuel surcharges that passengers pay every time they fly. Tony Fernandes told reporters that despite a 40 per cent drop in the price of crude oil in recent months the budget carrier could not afford to pass the savings on to passengers.

The CEO said the reason the fuel fees were staying for the time being was that the Malaysian ringgit was low when compared to other currencies. In a recent Twitter post, Mr Fernandes said he had received an early Christmas gift as oil had dropped by an additional six US dollars a barrel.

A barrel of Brent crude oil peaked at US$107 in July. This week it was listed at US$68. Air industry analyst Shukor Yusof said that he was of the opinion that now crude was below US$70 a barrel all airlines should review the surcharges they levied on passengers.
 
Mr Yusof continued by saying airlines were quick to add on fuel fees when the cost of oil was increasing, but slow to reduce them when the price was dropping. A spokesperson for AirAsia recently stated that fuel supplements were dictated by the distance flown and longer flights garnered higher fees.

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