Bangkok Airways has slashed its fuel surcharge by as much as 52 percent to reflect weak fuel prices and make its ticket prices cheaper to counter the downturn in travel demand.

The reduction, which took effect recently, came as jet-fuel prices slipped to around US$60 a barrel, while crude oil prices dropped to slightly over $40 a barrel.

But it raised questions why airlines continue to impose fuel surcharges even though crude oil prices have fallen well below US$80 a barrel, the level which prompted carriers to pass on the cost difference to passengers in the form of fuel surcharges.

The latest round of fuel surcharges was applied across the privately owned airline’s network, both domestic and international.

The fuel surcharge for international flights between Thailand and Cambodia, Laos, Burma and Vietnam was cut to $15 per flight sector from $25.

The surcharge from Bangkok to Macau is down to $25 from $30, Bangkok-Xi’an to $45 from $60, Bangkok-Guilin to $30 from $40, Samui-Singapore to $25 from $45 and Samui-Hong Kong to $32 from $60. Continue reading →

Popularity: 5% [?]