Aircraft, all airline strategies to defend against high fuel prices
From jet fuel surcharges, to hand luggage fees, to ticket price hikes. Everything you need to know before you travel
by Mara Monti
Key points
Holiday planners are faced with a new reality of higher fares, fewer flights and difficult choices about the actual convenience of a trip, while the risk of jet fuel shortages looms. The culprit is volatile oil and jet fuel prices that have been fluctuating since the Middle East war began, exacerbated by the closure of the Strait of Hormuz that has disrupted global oil shipments. Airlines around the world are reacting by reducing schedules and increasing fares and costs. Experts warn that even if oil prices start to fall, the situation may not improve quickly, as airlines may take months to adjust fares while waiting for energy markets to stabilise. Adding to the alarm about fuel shortages over the next three weeks.
Hand luggage fare increases
The first to react were the American carriers who, not having contracts to hedge against fuel price increases, directly passed the price hikes on to passengers. Delta Air Lines, for example, raised fees for the first and second bag on all flights by an average of $10, to about $45-55 per bag. United Airlines introduced a similar $10 baggage fee on all domestic flights in the US and some international flights. Low-cost JetBlue has increased its baggage fees between $4 and $9, depending on whether travel is during peak or off-peak hours. Southwest Airlines, which put an end to the 'baggage flying free' tradition, increased its fares by about $45 to $55.
Additional checked baggage fees on long-haul flights have so far been limited to large US carriers since international long-haul routes often include at least one free checked bag in the ticket.
And ticket prices
European airlines, unlike American ones, are largely hedged against the risk of fuel price increases so they are currently holding out, but some have already said that by the summer, if the situation in the Strait of Hormuz does not change, price rises will be inevitable, not excluding the possibility of cutting routes or grounding planes. Air France-KLM has explicitly raised long-distance ticket prices by about 50 euros per round trip on long-haul routes, while Scandinavian Sas and Polish Lot have already cancelled flights in response to soaring fuel costs. In the case of Sas, 'temporary price adjustments' were also made to cover additional fuel costs,
In general, other carriers, including British Airways, Lufthansa, Ryanair and easyJet have indicated that further increases may follow, especially as fuel hedging positions disappear.
