LIAT removes fuel surcharges

LIAT removes fuel surcharges

Regional airline LIAT today announced the complete removal of fuel surcharges on all new tickets booked effective March 1st.

Chief executive officer David Evans said oil is now trading at a 12-year-low, ending a decade of high jet fuel costs, which has impacted ticket prices.

“We are committed to offering our customers the most affordable fares so our Finance team regularly reviews the fuel surcharge levels and whenever changes are decided upon we announce them to the market,” Evans said.

“In this vein, we reduced the fuel surcharge by 50 percent at the beginning of 2015 and it will now be completely removed from March 2016. This will mean that fares will fall by an average of 5 percent. So, beginning 1st March, customers will only have to pay the airfare and any applicable airport and government taxes when they book a flight.”

The removal of fuel surcharge will take effect on March 1.

While the price of oil has been trending downwards, Evans explained that the effects of crude oil price reductions take some time to impact on the cost of aviation fuel.

“The jet fuel price to LIAT is on average 90 percent higher than the crude price and it takes on average three to six months for the crude oil price reductions to be applied in the region,” he said.

Evans noted the surge in oil prices since 2003 had turned fuel into one of LIAT’s largest costs.

Source: PR

5 Responses to LIAT removes fuel surcharges

  1. Alex Alleyne January 28, 2016 at 12:40 pm

    A move in the right direction .Let us hope that this is just the beginning……….More to follow , like mid week specials etc,etc.
    Later ,…… prices “slash” in half …..YOU KNOW THE DEAL.

  2. Tony Webster January 28, 2016 at 12:53 pm

    For a moment, back there, I thought. I read….”Reduced by five percent”. Really? Keep going, Sir!

  3. Ezekiel Baker
    Ezekiel Baker January 28, 2016 at 1:10 pm

    How many years is this airline company going, poor leadership, poor management, poor lock of vision and direction, sack all the board of directors, sack the managing director, sack all senior management. And restructure from the bottom up.

  4. Alex Alleyne January 28, 2016 at 3:04 pm

    @Ezekiel , we have been saying and asking the same of WICB.

  5. Colin Daniel January 29, 2016 at 6:20 am

    Reduction required in the fees and taxes charged by the governments which comprise about half of the ticket costs. Increase in passengers would recapture this lost revenue to the governments but more importantly increase revenue to the airline and hence reduce the need for its subsidies from the shareholder governments. BTW none of the governments on the loss making route who do not provide subsidies to LIAT should be entitled to collect taxes on tickets.


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