Saturday 31 January 2015

[Today] Airlines should take advantage of lower fuel prices to sell more seats

I refer to the report “AirAsia scraps fuel surcharges as oil prices fall” (Jan 27), and applaud AirAsia’s announcement, which recognises that travellers should not be taken for granted.

Critics may take this as a countermeasure to its recent setback, but it bodes well, showing that it is keeping up with the times, as the surcharges were introduced when crude oil prices skyrocketed.

In recent months, when the prices plummeted, airlines complacently and conveniently took the surcharges to be steadfast. Airport taxes and fuel surcharges, when combined, cost more than the ticket itself for numerous flights.

Airlines should make good use of current oil prices and take prudent steps to hedge their forward fuel prices to sell more seats, at least for this year and perhaps the next.

I shall look forward to a flying start to the year.