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Bali News

Aviation Fuel Costing More

Passenger Borne Fuel Surcharges Seen as Having Minimal Impact on Travel Demand.


Bali News: Aviation Fuel Costing More
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(5/24/2004)

A world-wide surge in the price of crude oil to prices in excess of US$ 40 per barrel is making itself felt on international air travelers.

The majority of the international air carriers, with varying amounts of fanfare, are adding fuel surcharges to cover their increased cost of fuel, estimated to account for anywhere between 10 to 30 percent of an airline's total operating costs.

The major inbound carriers to Bali – among them Singapore Airlines, Qantas, Cathay Pacific, Garuda Indonesia and Air Paradise have reportedly all introduced or confirmed their intention to add fuel surcharges in the near future.

Jet-Fuel prices stand at more than US$ 48 a barrel, an increase of over 26% from the price in late 2003 and represent a four year peak.

Despite the higher fuel costs, demand for air passenger seats across Asia remains buoyant, with demand up nearly 15% from a year earlier.


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