LIAT will be re-introducing a fuel surcharge on tickets from Monday.
Announcing the decision yesterday, Corporate Communications Manager Desmond Brown said that over the past several months jet fuel prices have been spiraling upward, increasing by 26 per cent from US$97 per barrel in late 2010 to US$131 per barrel.
Brown explained that the fuel surcharge will be based on mileage.
He said passengers will be charged US$12.50 for a one way trip of up to 150 miles; US$17.50 for a one way trip of between 151 to 300 miles; and US$20 for a one way trip above 300 miles.
“This is not a decision we have taken lightly. People and businesses throughout the Caribbean and indeed the world have felt the impact of rising fuel prices and LIAT is no exception,” Mr. Brown said.
“The fuel cost forms a significant part of LIAT’s operational costs. We held off as long as economically possible but the company can no longer continue to absorb these increased costs.”
Brown noted that in recent times, all airlines worldwide have either implemented fuel surcharges or have increased their base fares.
“It should be noted that LIAT’s base fares have not increased since 2007,” Mr. Brown said, adding that “between 2007 and present, LIAT had faced increases in many critical operating costs including aircraft engines, personnel costs, spare parts, ground handling contracts, airport fees and charges.” (PR)
