JEDDAH, 9 September 2004 — Saudi Arabian Airlines is to levy a surcharge on international tickets and tourism packages, starting today. The surcharge of SR38 is to compensate for higher fuel costs caused by the recent rise in oil prices.
Although fuel costs have remained fairly stable in the Kingdom, Saudia buys a considerable amount of fuel abroad from suppliers at long haul destinations. Aviation fuel prices around the world have soared in the last two years.
Since January 2002, the price of aviation fuel has increased by 50 percent, and since January 2003, the Rotterdam ARC price has risen from 93 cents per US gallon to 130.38 cents — 40.6 percent, according to figures issued on Aug. 28 by the Energy Information Administration which tracks fuel prices around the world.
However, the much larger fuel surcharge imposed by other commercial airlines is having a noticeable effect on the transport of air cargo.
The Saudia fuel surcharge does not apply to domestic flights, to infants or to the tens of thousands of employees of the airline who, as part of their remuneration packages, receive considerable benefit from free or heavily discounted travel. Aircraft refueled inside the Kingdom also enjoy the benefits of cheap fuel.
Tickets on Saudia already carry a surcharge — SR19 — as a result of increased insurance premiums made necessary after 9/11. Tickets also include a SR50 airport tax.
Some travel agents contacted today had not been informed officially about the surcharge. “It is the first time I have seen such a charge on Saudia,” said Mohammed Khan, a ticketing clerk for a major agency.
The new surcharge is denoted on ticket coupons under the code YR while the insurance charge carries the code YQ. Khan’s reaction to the surcharge was practical. “In the price of any international ticket, the charge is a very small percentage,” he said. “It is not likely to have any major effect on travel volume.”
