El Al and Cathay Pacific lower fuel surcharges

El Al and Cathay Pacific have joined the small but growing number of airlines to announce that they are lowering their fuel surcharges as a response to the recent downward trend in the price of oil.

The price per barrel for oil dropped to near the $90 mark on 30 September, in a climate of economic uncertainty as the financial bailout plan in the U.S. was still not agreed by lawmakers.

In July, the per-barrel price of oil reached a high of $147 per barrel. As the price of oil rose steadily, up to its high point in July, the majority of airlines raised the levy that passengers were forced to pay on fuel. British Airways, for example, increased fuel surcharges three times in just a matter of weeks.

Oil prices have been declining steadily since that time, prompting some carriers to lower fuel surcharges they had introduced in the preceding months. Cathay Pacific has lowered its surcharge on long-haul flights by 10 per cent, and by 15 per cent on short-haul services.

El Al is also making some changes, reinstating a surcharge of £69 on one-way fares, which is an actual savings of 9.5 per cent and 16.8 per cent, on short- and long-haul flights, respectively.

A number of other carriers have been criticized for not making a similar move, including both British Airways and Virgin Atlantic.

www.elal.co.il