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SIA lowers fuel surcharges

written by WOFA | February 13, 2015

A Singapore Airlines Airbus A380 at Sydney Airport. (Rob Finlayson)
A Singapore Airlines Airbus A380 at Sydney Airport. (Rob Finlayson)

Singapore Airlines (SIA) is the latest carrier to pass on the benefit of lower fuel prices.

The airline said on Friday it would lower fuel surcharges on tickets booked on or after February 26 between US$5 and US84 per sector, depending on the flight distance and class or travel.

“Fuel prices have declined in recent months, although jet fuel continues to account for a significant percentage of SIA Group expenditure,” SIA said in a statement.

Under the new pricing structure, the airline will levy a fuel surcharge of US$109 per sector between Singapore and Australia in economy class, $US122 for business class and US$138 for first class.

While ticket prices were not expected to change due to the lower fuel surcharge, the move was especially beneficial for members of SIA’s Krisflyer frequent flyer program who use points to redeem flights given fuel surcharges and other taxes were paid separately.

Both Virgin Australia and Qantas recently announced they would no longer have a separate fuel surcharge and instead incorporate the cost of fuel in their base fares.

Low-cost airline group AirAsia was another airline to respond to the recent decline in oil prices by removing fuel surcharges at all its short-haul AirAsia and medium-haul AirAsia X affiliates.


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