Airlines have imposed new changes to the fuel tax

Agencies: Ticket prices are at acceptable levels... and expectations are that they will rise during peak times

  • The demand for travel is still strong, and is constantly increasing.

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Travel agencies said that airlines have recently resorted to imposing new amendments to the fuel tax for travel tickets, in light of the recent increases in oil prices, pointing out that fuel constitutes a large part of the operating cost of air carriers, amounting to about 40% in current period.

She told «Emirates Today» that the prices of airline tickets have witnessed varying rises, according to travel destinations and levels of demand for them, but on average they are still at acceptable levels during this period of the year, and they are expected to rise at large rates during peak times.

fuel tax

Executive Vice President of Al-Rais Travel Company, Muhammad Jassim Al-Rayes, said that, in light of the recent increases in oil prices, airlines have resorted to adjusting the fuel tax on ticket prices, pointing out that some companies have made one adjustment so far. That companies adjusted the tax twice, and another three times recently.

He explained that increases in fuel costs forced companies to reconsider this tax more than once and in a short period.

Al-Rayes stated that the prices of airline tickets have witnessed varying increases, according to travel destinations and levels of demand for them, but on average they are still at acceptable levels during this period of the year, noting that the demand for travel is still strong, and is witnessing a continuous increase, whether for the purpose of visiting or entertainment.

Al-Rayes pointed out that air carriers are forced to deal with high oil costs, as they constitute a very large proportion of the total operating costs, advising customers to plan travel in advance and book early, especially during peak times, to control travel expenses.

remarkable effect

For his part, the Director-General of Al-Faisal Travel and Tourism Agency, Yassin Diab, said that the prices of airline tickets are witnessing remarkable increases, in light of the increase in fuel prices during the recent period, pointing out that with the fluctuation of fuel prices, and the inability to predict their levels in the future, it has The burdens exceed the budget allocated by the dealers to travel during the summer.

Diab stated that airlines have recently resorted to amending the fuel tax on travel tickets, while other companies have resorted to issuing a new amendment to the tax, with prices continuing to rise, agreeing that fuel constitutes a large part of the operating cost of air carriers, and therefore its impact will be noticeable. in ticket prices.

Flexible pricing policies

Diab stressed that airlines closely and constantly monitor the rise in jet fuel prices, to adjust ticket prices, and follow flexible pricing policies that take into account several factors, including competition with other companies, and provide encouraging prices at the same time, while working to control their operational costs.

Diab clarified that travel agencies receive a notification regarding the modification of the fuel tax from some companies, while other companies resort to raising it without explicitly announcing it, so that it is added to the ticket cost as part of the total fees.

He pointed out that these increases in fuel costs will be reflected in the prices of travel tickets, especially during peak times, as demand rises to record levels.

Continuous adjustment

In turn, the head of Al-Abedy Holding Company for Tourism and Travel, Saeed Al-Abedy, said that airlines have resorted to imposing new amendments to the fuel tax in recent days, expecting that the fuel tax will continue to be amended by air carriers constantly, with the fluctuation of oil prices.

Al-Abedy indicated that fuel constitutes a large proportion of the operating costs of companies, which may reach about 40% currently in some air carriers, and therefore, prices are constantly monitored, to ensure pricing policies that take into account costs, and the availability of tickets that encourage travel.

He stressed that amending the fuel tax on travel tickets during the recent period, and raising it more than once, in the event of new increases in oil prices, will affect the average prices throughout the year, especially during peak times, noting that this tax is a very important factor in determining the total price of a ticket. Travel.

At the same time, he mentioned that the prices of airline tickets are subject to several variables, and factors that depend on market conditions.

He said: "Apart from the increases in the fuel tax, the level of available seats on flights, the destination of travel, and the strength of demand for them, have a major role in travel costs, especially during peak times."

• Air carriers monitor prices to ensure pricing policies that take into account costs and encourage travel.

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