Jun 06 2008
Will Airlines Change Basic Fare Structure Due to Fuel Costs?
In light of deteriorating predictability of fuel costs, I think the airlines may soon move to a completely new way of separating fuel charges from ticket prices.
Here’s what I predict: A non-refundable fuel charge calculation based on today’s cost of oil, times the actual number of miles flown.
Something like this:
Airfare roundtrip LAX-HNL: $400.00
Taxes and fees 25.00
Fuel charge (2,550 miles x today’s rate): 375.00
Total: $800.00
Can this help the consumer’s view of the airlines? I definitely think so.
This may also be the only way for the airlines to charge fairly for tickets in light of oil prices, while being able to maintain the more traditional basic airfare component pricing.
It may also be a way to return to relative airfare price stability, plus stop the insanity of irrational component charges for baggage, seat assignments, lavatory usage and more.
What do you think?
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