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Mon 9 May 2011 12:57 PM

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Etihad undecided on fuel surcharge as oil slides

State-backed airline hasn’t followed Emirates' path in scrapping fuel charge on tickets

Etihad undecided on fuel surcharge as oil slides

Etihad Airways, the flag carrier of oil-rich Abu Dhabi, has refused to confirm whether it will scrap its fuel surcharge on air fares amid declining oil prices.

The state-backed airline said it would continue to observe prices but stopped short of following in the footsteps of Dubai’s Emirates Airline, which on Sunday said it would remove its fuel surcharge from all tickets with immediate effective.

“Fuel prices are volatile and we are monitoring the situation carefully to ensure we remain competitive,” an Etihad spokesperson told Arabian Business in an emailed statement.

Crude oil tumbled 17 percent following the death of the al Qaeda leader Osama bin Laden, marking its biggest weekly decline since 2008.

The fall is a welcome break for airlines, who have been squeezed by surging oil prices over the past two months, spurred by widespread violence in the Middle East and shortage fears.

Brent crude hit a 32-month high in March, reaching more than $127 a barrel.

President of Emirates Tim Clark warned last week that oil prices would “bring all of us to our knees,” if they continued to rise, and warned low-cost carriers could be the first casualties.

“Nothing can be sustained at this level so something has to be done,” he said. “If by the end of the year we still have $130, $140 or $150 then watch this space.”

British Airways last month announced a third fuel surcharge hike on long-haul flights.

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Chef 9 years ago

Just Checked online Emirates Airline for a ticket Dubai to amsterdam economie 6455 Dhs.
KLM 3885 Dhs . How does that work can anybody explain?

Dave 9 years ago

Because Chef the KLM aeroplane will be half empty, the emirates aeroplane will most likely be full, so you pay a higher price for a less available seat.

HH 9 years ago

When traveling to a destination, usually their national airline will have the best deal. I have heard this many times from different people, and have noticed it myself when booking flights.