Budget Airlines raise fuel surcharges

The Bangkok Post, Saturday 13th May 2006, Budget flyers feel fuel pinch, Boonsong Kositchotethana

"Travelling by low-cost carriers might not be as cheap as it seems following the latest round of fuel-surcharge increases. Thai AirAsia and One-Two-Go are set to increase their rates for domestic routes by 100 baht per flight sector to 400 baht, to take effect from Monday. Because Nok Air raised fuel surcharges by 100 baht to 300 baht on May 1, it plans to wait until next month to follow suit. Thai Airways International, the parent of Nok Air, will raise its surcharge to 400 baht from 300 baht on June 1.

Thai AirAsia will also increase its fuel surcharge on flights to neighbouring countries by 100 baht per flight sector to 600 baht, to take effect on Monday. However, the rises won't effect services to Penang and Kuala Lumpur, for which surcharges remain at 500 baht. From Monday, the cheapest Thai AirAsia ticket on a one-way journey from Bangkok to Chiang Mai will be about 1,450 baht, 699 baht of which represents the fare.

Fuel expenses have become a major part of airlines' operating costs after manpower, accounting more than one-third of overall expenses. Jet fuel traded at an average of $75.76 a barrel in Singapore between January and March, 32% more than in the same period last year, and peaking at a record $90.05 on May 3, according to the oil-pricing research service Platts.

The fuel surcharges do not wholly reflect increases in fuel costs as airlines say they need to strike a balance between passenger sentiment and sustaining their businesses."