The Effect of Fuel Cost Increases on Airfares

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    Checked Baggage Fees

    • image via valueairfare.com

      Some airlines have gotten creative, finding unique ways to offset the high cost of jet fuel. In the past, passengers were charged for checked baggage only if it exceeded a certain weight. Most major carriers now charge for any checked baggage, no matter how small. The only way to avoid charges is to only fly with carry-on baggage. Not all airlines charge for checked baggage, though.

    Other Hidden Charges

    • US Airways began experimenting with other charges during the fuel price spike of mid-2008. However, airlines use extra charges to different degrees. Some charge for refreshments, while others charge for everything from pillows and blankets to headphones. These charges are not reflected in the cost of the ticket.

    Airfares Depand on the Route

    • image via quantumtravel.com

      Airfares on competitive routes (Los Angeles to New York, for example) rise along with fuel prices. However, these fare hikes are usually tempered somewhat because airlines do not want customers to choose a competing airline.

      If one airline dominates a route, the fare increase is much greater. There is no competition to keep the price hike in check.

    Slow Recovery

    • High fuel prices do not last forever. However, the airfares and extra fees that increased with the rise in fuel prices do not necessarily fall with them. After oil prices returned to normal in late 2008, for example, some airlines decided to keep fees for checked baggage, even though they cut fuel surcharges soon after oil prices fell.

    Check the Fees

    • The cost of flying always includes fees, taxes and surcharges. Savvy travelers check on these extras before purchasing a ticket. With the lessons of 2008 behind them, passengers will be hyper-aware of costly extras the next time fuel prices spike.

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