Analysis shows fuel surcharges are falling; ticket prices aren't

ByABC News
December 22, 2008, 5:48 AM

— -- Airlines are rolling back fuel surcharges for trans-Atlantic routes, but air travelers are paying the same price for tickets.

British Airways and Virgin Atlantic said last week they cut fuel surcharges because of lower oil prices. U.S. airlines have done the same. At USA TODAY's request, FareCompare.com analyzed non-stop flights on 13 routes between U.S. cities and London and found that, although fuel surcharges dropped last week, ticket prices remained the same. The ticket price is made up of the base airfare, the fuel surcharge and taxes and fees.

"The airlines pulled the same game as they did on domestic routes lowering the fuel surcharge and adding it to the base airfare," says Rick Seaney, CEO of FareCompare.com. "This again shows that fuel surcharges are all about marketing and nothing to do with the price of fuel or the length of a trip."

The average price of jet fuel for U.S. airlines was $3.91 per gallon in July and $1.89 per gallon in November, according to the Air Transport Association of America, which represents U.S. carriers.

On Dec. 1, British Airways had the cheapest nonstop, round-trip Seattle-London ticket for a March 30 departure with a seven-night stay. The ticket cost $1,078, including a $340 fuel surcharge.

On Dec. 19, for the same departure date, British Airways had lowered the fuel surcharge to $290, but the ticket still cost $1,078.

The biggest fuel-surcharge reduction for the routes FareCompare.com analyzed was $52 for United Airlines' Washington-London flights.

On Dec. 1, United's cheapest round-trip ticket for a March 30 departure was $584, including a $290 fuel surcharge. On Dec. 19, for the same departure date, United's fuel surcharge was $238, but the ticket still cost $584.

United spokeswoman Robin Urbanski says the airline prices its tickets "competitive to the market," and needs to offset costs "while providing a reasonable return."