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Airlines say "no" to call to drop fuel surcharges
Treasurer Peter Costello has called on Australia’s airlines to cut the fuel surcharges currently imposed on passengers due to the rising oil prices.
The charge that is passed on to passengers to cover the cost of jet fuel has been rising steadily until recent months and Mr Costello called on the carriers to reduce it.
“I think those airlines that said they had to have surcharges because the oil price was going up should now be saying, well, they can take off their surcharges because it is coming down again,” Mr Costello told Sky News.
“And I wouldn’t expect airlines to hold temporary surcharges, which were put in place in relation to temporary conditions, to hold those surcharges once those conditions have passed.”
However, Qantas chief financial officer Peter Gregg said yesterday there were no plans to cut the charges. “While the spot price may have fallen briefly, fuel prices remain volatile,” he said.
“On top of the crude oil situation, jet fuel refining margins have increased significantly and are currently 30 per cent above their 2005-06 averages.”
Graham Muldoon
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