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Oil is cheap. Why do fuel surcharges still exist?
The title says it all. Oil has gone down to below $35 a barrel. Yet, airlines still charge ridiculous fuel surcharges. This comes into play bigtime with regards to using points to fly on BA, since they will still charge you the fuel surcharge of hundreds of dollars, as if oil were still pushing $200 a barrel.
What will it take to make this money-grab stop?
Because the surcharges have very little to do with the price of oil, many airlines have even removed the word fuel from the surcharge.
They do it because they can. The constituency that it affects is very small (the charge is opaque to revenue buyers who just see a total price) so it primarily affects award redemptions and we don’t have a lobby strong enough to create the legislative change that would stop this (along the lines of Brazil).