26 April 2005

Emirates Brings Fuel Surcharge Into Fare Pricing

Emirates will start incorporating any ticket fuel surcharges into its passenger fares for sales in New Zealand.

From May 1, all the airline's fares for travel from New Zealand will be inclusive of any fuel surcharges.

Emirates' New Zealand manager Chris Lethbridge said: "We are already doing this in other markets around the world. In New Zealand we simply have been following the local industry norm until now, but the time has come to change our approach. The fuel price is part of the operating cost of an airline, unlike airport taxes or security levies, and we feel that it makes more sense to the customer and to us simply to make it part of the fare."

He added: "Originally the fuel surcharge was viewed as a temporary measure until jet fuel prices dropped back to more 'normal' levels and the surcharge could be discontinued. That's why it was shown separately. Higher fuel prices, however, have become part of life and seem likely to stay with us for a while longer.

"By incorporating the fuel surcharge in the fare, we are making the ticket price more transparent to the customer. The surcharge also has been an irritant for travel agents, because separate charges must be listed under different codes."

Mr Lethbridge also clarified that agents' commissions now will be paid on the full fare, including the fuel surcharge. Taxes and levies will continue to be shown separately.

ENDS