US to Europe fuel surcharges dropping

Since jet fuel prices began to soar earlier this year, airlines for the first time are reducing – rather than increasing – fuel surcharges on flights between the U.S. and European destinations.

Air passengers have had to deal with a perplexing array of new fees and charges this year, and this rollback in fuel surcharges is coming as a welcome relief to high travel costs as well as the confusion over the costs.

Over the past week, airlines have lowered fuel surcharges by 18 percent, or $280, on flights connecting Chicago and other major cities in the U.S. with European destinations such as Amsterdam, Madrid, Rome and Zurich, noted the founder and chief executive of Bestfares.com, Tom Parsons.

On flights from the western half of the U.S. to London, the drop in the fuel surcharge is 17 percent, or $366, added Parsons.

The price of crude oil has fallen dramatically in recent weeks to around the $80 per barrel level, driven downward by concerns that the global financial crisis will reduce demand for next year. On Monday, the price of light, sweet crude for November delivery rose by $3.49, to $81.19 per barrel.

Airlines are now beginning to pass on to their customers some of the savings on fuel costs, and are hopeful that this will stimulate interest in travel to Europe during the fall season.

www.ohare.com