New Jersey Senator Presses Airlines to Reduce Fuel Surcharges
Fuel surcharges remain high, even though the price of oil is roughly half of where it had peaked a few months ago. The price of fuel has also been the chief argument behind most of the other recent airline fees, such as baggage, food, and beverages. New Jersey Senator Robert Menendez is calling on the airlines to “discontinue the surcharges and other fuel-related fees, rather than use them to expand profits.”
Menendez understands that the airlines need to recoup their losses, but "It's deceptive to say you still need a fuel surcharge when aviation fuel prices are down $2 per gallon". He expressed concern that with the busy holiday travel season coming up, families may be "priced out of traveling".
David Castelveter, spokesman for the Air Transport Association, a trade group representing major domestic airlines said “the decision on surcharges will be dictated by competition in the marketplace among individual airlines," and that the US airline industry is "going to lose several billion dollars this year".
Last week, jet fuel fell to an average of $2.34 a gallon, compared to a $4.33 average in July; crude oil, from which jet fuel is refined, dropped to $74.25, compared to $147.27 in July.