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Home > LIAT Fuel Surcharge

1. What is a Fuel Surcharge?

 

It is a charge that is applied on all flights that reflects the fluctuating price of worldwide oil and jet fuel. It applies to tickets for all passengers including children and infants and is intended to help cover excessive fuel expenses. LIAT will have three fixed Fuel Surcharges which will be applied in accordance with trip mileage. It will be adjusted on a bimonthly basis according to market prices.

 

2. Why is LIAT re-introducing the Fuel Surcharge at this time?

 

Fuel is LIAT’s second largest cost factor and any large fluctuations in this area can negatively impact the financial status of the Company. The average price of aviation fuel has risen dramatically during 2010 and 2011. LIAT’s fuel expenses for 2010 were $10 million more than 2009. Should present high fuel prices continue, LIAT’s fuel bill can be expected to increase by another $16 million for 2011. The Fuel Surcharge will allow the airline to target revenues for meeting its escalating fuel costs.

 

3. How much is the Fuel Surcharge and how is it calculated?

 

 

Miles

% of total

Surcharge

USD per One Way Route

Surcharge

USD per roundtrip Route

Tier 1

<150

46%

$12.50

$25.00

Tier 2

151-300

30%

$17.50

$35.00

Tier3

>300

24%

$20.00

$40.00

Weighted Ave Surcharge

$15.79

$31.58

 

The Fuel Surcharge operates under a three tier system. There are three possible fees, one of which is applied per passenger for every one-way trip and will be based on the trip mileage.

4. When will the Fuel Surcharge go into effect?

 

 

The Fuel Surcharge will be effective from August 15, 2011. It will be applied to any ticket purchased on or after that date.

 

5. Will I be required to pay the Fuel Surcharge if I purchase my ticket prior to August 15, 2011 even if my travel date is after the effective date?

 

 

No

 

6. For what period of time should passengers expect to pay the Fuel Surcharge?

 

 

The Fuel Surcharge will be in effect until the price of fuel stabilizes.

 

7. How will LIAT collect the Fuel Surcharge?

 

The Fuel Surcharge will form part of your ticket purchase price and be collected in the same manner as all other applicable taxes and fees.

 

8. Will the Fuel Surcharge be displayed on its own or combined with the base fare?

 

 

It will be displayed separately. Keeping it separate has two advantages. First and foremost the surcharge is visible to the customer and secondly this allows for easy adjustment to the surcharge every two months.

 

9. Will I be charged per one way trip?

 

 

Yes, depending on the distance travelled, the Fuel Surcharge will range from a minimum of US$12.50 to a maximum of US$20.00 per one way trip. You will not pay more than US$20.00 per trip or US$40 for a roundtrip.

 

10. When will a determination be made to re-assess the Fuel Surcharge?

 

The Fuel Surcharge will be re-assessed every two months and will be adjusted according to changes in the jet fuel prices on the world market. At that time, it will be determined whether to adjust the surcharge upwards, downwards or remove it entirely.

 

11. Where does the money from the Fuel Surcharge go?

 

The money will be used to alleviate the costs associated with the rising fuel bill.

 

12. Do other airlines have a Fuel Surcharge?

 

 

Yes, most major airlines including British Airways, Air Canada, Lufthansa, and Virgin Atlantic apply a Fuel Surcharge to passenger ticket cost.

 

13. Will I be credited the Fuel Surcharge if I cancel my travel plans?

 

Yes, once a credit is created in accordance to the Company’s normal procedures, for a passenger booking that was not utilised, the fuel surcharge will also be credited.

=END=

 

ABOUT LIAT

LIAT is one of the leading Caribbean airlines. It is owned by regional shareholders, with major shareholders being the Governments of Barbados, Antigua & Barbuda and St. Vincent & the Grenadines. More information about LIAT may be found at www.liat.com .

 

MEDIA CONTACT

| Desmond L. Brown | Corporate Communications Manager | LIAT (1974) LTD | Head Office, Coolidge Business Complex | Sir George Walter Highway | Antigua | Telephone: +1 268 480 6222 | fax: +1 268 480 5638 | email: brownd@liat.com |


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