The Blue Swan Daily, 16 May 2018 – A few weeks ago, The Blue Swan Daily predicted the return of fuel surcharges from airlines all around the world. It took only a couple of weeks for both Mexican lost cost carrier, Volaris and New Zealand national carrier, Air New Zealand to introduce such surcharges.
See predication: Who’s on first? Who’ll be first airline to add a fuel surcharge?
On 14-May-2018, Volaris announced an increase to its base fares for domestic and international operations due to the increase in oil prices. Domestic fares will increase by MXN50 (USD2.54) while international will increase by USD5, effective 17-May-2018. Volaris CEO Enrique Beltranena stated: “With the aim of consolidating our ultra-low-cost model in the face of the abrupt rise in oil prices and, therefore, the jet fuel that represents approximately 30% of our costs, we are forced to increase our base fares in a minimal way to guarantee that our costs are stabilized”.
Overnight, Air New Zealand confirmed, via a communication to travel agents, that it will increase its domestic fares by 5%, also from Thursday 17-May-2018. In this instance, Air New Zealand is citing more than just fuel cost rises, instead insisting the increase is “in response to operational cost pressures, including labour, fuel, goods and services,” which the airline believes it is unable to continue to absorb. Read more…
