FlySafair will place a temporary fuel charge on certain flights from Thursday, after the airline absorbed increases in fuel costs itself for weeks. (Photo: Elisma van der Watt/Maroela Media)
From Thursday, FlySafair will impose a temporary fuel charge on certain flights, after the airline absorbed increases in fuel costs itself for weeks.
The company says the decision follows after the fuel price at South African coastal airports rose by around 70% in just one week since the crisis in the Middle East broke out on 28 February.
According to FlySafair, the airline initially bore the cost itself to protect passengers from immediate fare increases. However, the situation has now reached a point where part of the costs must be transferred to protect the company’s long-term sustainability.
“We will specifically indicate this temporary fuel charge as a separate item on all tickets to ensure fairness and transparency for our customers,” says Kirby Gordon, head of marketing for FlySafair.
The charge will only apply to flights departing on or before May 12 and will be revised regularly according to fuel prices.
According to the airline, the price increases are largely caused by disruptions in global oil distribution, after the Strait of Hormuz – through which around 20% of the world’s oil supply is transported – practically came to a standstill.
Ship traffic through this important route is estimated to have decreased by 70% to 80%.
(Photo: Elisma van der Watt/Maroela Media)
Fuel is already the largest single cost factor for the airline. According to FlySafair, this usually accounts for 50% to 55% of its direct operating costs. At current price levels, the company estimates that it costs around R35 000 extra per flight hour for each Boeing 737-800 aircraft operated.
“The persistence and scale of these fuel costs leaves us with no reasonable alternative,” says Gordon. “Instead of raising rates across the board or hiding costs, we are introducing a clearly marked, temporary surcharge.”
Passengers who have already booked their flights will not be affected. FlySafair says that no fuel surcharge will be retroactively added to existing bookings.
The airline says the charge will be reduced or eliminated once market conditions improve and fuel prices stabilize.