AIRLINES HEED SEN. MENENDEZ'S CALL FOR MORE TRANSPARENCY IN AIRFARES, BUT MENENDEZ SAYS SAVINGS SHOULD STILL BE PASSED ON TO CON

Monday, November 10, 2008

WASHINGTON – An analysis of airfares in today’s USA Today shows that many airlines have eliminated fuel surcharges from domestic flights and have instead folded the amount of those surcharges into base airfares. As a result, the price of flying has generally not decreased, but consumers are given more accurate information about the amount they will pay to fly when they search for a ticket.

This increased transparency was something that U.S. Senator Robert Menendez (D-NJ) called for last month. He wrote the CEOs of 11 major U.S. airlines urging them to roll back fuel surcharges and extra costs and to provide consumers with a more accurate representation of what they will actually be paying when they search for a ticket (letter to CEOs: http://menendez.senate.gov/newsroom/record.cfm?id=304436). In addition, he wrote U.S. Transportation Secretary Mary Peters late last month, urging her to initiate an investigation into the basis for fuel surcharges and whether consumers are given accurate information about the actual price they will be paying to fly (letter to Peters: http://menendez.senate.gov/newsroom/record.cfm?id=304765).

“As someone who called for airlines to be more up front with the public about the cost of flying, this increased transparency is certainly welcome news,” said Senator Menendez. “There is still more transparency that can be instituted, as travelers too often are not made adequately aware of checked baggage fees and other extra charges. Airlines can’t expect to pull a fast one on American families by surprising them with additional costs.

“Unfortunately, as fuel costs have dramatically decreased, we still have yet to see airfares come down across the board. Jet fuel cost $4.34 per gallon on July 2, and as of last Tuesday, it cost $2.24 per gallon. As Americans look to spend the holidays with their families, it’s time the airlines pass some of their fuel savings on to the flying public.”

The spot price of Kerosene-Type Jet Fuel in New York Harbor, a major jet fuel price indicator, was $4.34 per gallon on July 2. Last Tuesday, the most recent day for which data is available, it was $2.24 per gallon (http://tonto.eia.doe.gov/dnav/pet/hist/rjetnyhd.htm).

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