Take the 2-minute tour ×
Travel Stack Exchange is a question and answer site for road warriors and seasoned travelers. It's 100% free, no registration required.

Reading on the web about the "Fuel Dumping" trick made me aware of the fuel surcharge, one of several possible charges being added to the base price of a flight. In order to understand the trick better, I would like to know:

What exactly is the fuel surcharge? Is it mandated by law? Is it just a trick that airlines use to keep the base price low?

The screenshot below shows details about what is added to the base price of a Lufthansa ticket DRS - MUC in June 2013. Note the Fuel and Security Surcharge.

Example of taxes, fess & carrier charges (per person)

share|improve this question
add comment

2 Answers

Fuel Surcharge is the cost that airline passes to the consumer if it's fuel hedging is insufficient to offset the costs of fuel.

Although more often then not it's a marketing tool for artificially keeping the fares low but not being "in the red" and since there is no regulation on the fuel surcharges the airlines are generally free to charge anything they like.

share|improve this answer
    
The article you linked to mentioned: "This rate is calculated using the DOE (Dept. of Energy) website. That gives national averages." That makes me wonder: Is there regulation on how airlines have to calculate the fuel surcharge? Or can they just name any amount they like? –  feklee Jun 10 '13 at 18:12
2  
@feklee There is generally no regulation on how these fees are calculated. But it's usually a good idea to have similar fees for similar flights. The article is specific for trucking companies but gives a general idea. There is no regulation as far as fuel surcharge is concerned: layover.com/owneroperator/rexpert/1105.html –  Karlson Jun 10 '13 at 18:19
    
-1 for the first paragraph, +1 for the second. It's purely a marketing tool, masquerading as a ways to compensate for temporary increases in fuel prices in between planned price changes. –  jwenting Jun 11 '13 at 5:49
1  
@jwenting: and you know that... how? –  Michael Borgwardt Jun 11 '13 at 11:01
add comment

According to the article about Fuel Dumping on Hack My Trip:

Some airlines still include fuel surcharges in the base fare, and others may break them out only for certain routes.

So not all airlines use them, which means it can't be mandated by law. And why would there be regulation about individual components of an end user price. There is regulation (at least in some countries) that forces airlines to show end users the total price including all charges, to prevent false advertising .

The blog further states:

I think a better explanation is that airlines can easily adjust the cost of a ticket by changing just the fuel surcharge that applies to many routes between two regions without adjusting the base fare for each individual route as well as the dozen or so fare classes on each flight.

That's just some guy's theory, but it makes a lot of sense: basically the fuel surcharge is an administrative tool that simplifies the act of passing cost increases/decreases to the end user.

share|improve this answer
add comment

Your Answer

 
discard

By posting your answer, you agree to the privacy policy and terms of service.

Not the answer you're looking for? Browse other questions tagged or ask your own question.