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WestJet introduces fuel surcharge on all flights

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CTV.ca News Staff

Date: Mon. May. 12 2008 8:44 AM ET

WestJet will begin adding fuel surcharges to all flights starting Tuesday, the company has announced.

The Calgary based airline says the surcharges will raise ticket prices by $20 for short-haul flights, $30 for medium range flights and $45 for long-haul flights.

"This is not a decision we have taken lightly. All Canadians have felt the impact of rising fuel prices and the airline industry is no exception," WestJet Executive Vice-President, Bob Cummings, said in a press release Monday.

"We held off as long as economically possible but with the unrelenting and unprecedented increases in the cost of fuel over the last year, we are implementing this measure to offset the effect."

Cummings said WesJet will continue to "offer seat sales to our guests and be the low-fare leader in Canada."

Air Canada introduced fuel surcharges last week boosting its ticket prices by $40 for return flights of less than 480 kilometres, $80 for return flights between 480 and 1,600 kilometres, and $120 for flights longer than 1,600 kilometres.

Porter Airlines said last week that it too was considering adding fuel surcharges.

On Friday, the world price of crude oil increased to a benchmark US$126.20 per barrel. The cost of jet fuel, a refined crude oil byproduct, is even more costly than crude.

South of the border, carriers are passing along rising fuel costs to the consumer as well.

Delta Air Lines announced an additional US$20 roundtrip on domestic flights last week, following similar decisions by United Airlines, American Airlines and Continental Airlines.

Apart from adding fuel surcharges, airlines are looking into new tactics to cope with increased expenses. Many are slowing down to conserve jet fuel and save money. Southwest Airlines, for example, projects it will save $42 million in fuel this year by extending travel times by one to three minutes.

Airlines around the world have been quickly adding surcharges and amenity charges for "extras" like bags and legroom as they fight to manage elevating energy prices. 

With files from The Canadian Press

Comments are now closed for this story

FSN
said

For all you folks that were bashing Air Canada for adding a fuel surcharge a few days ago while singing the praises of WestJet... this is your wake up call!

Adding a fuel surcharge is not an Air Canada "thing". Most US airlines have done the same. It doesn't matter if you're Air Canada, WestJet, Air Transat, or any other airline. It's simply the new cost of doing business. This is the new reality.

Don't want to pay?
Don't fly!


Chris
said

Despite profits, they still have to ding you!!! But we knew this was coming... and there's not a damn thing we can do about it... more airlines will follow suit.


Jeremy
said

And how much profit did they make last year??? They couldn't dip into their profits now could they??? Capitalism is very destructive. Sure, we had booms where everyone lived high and mighty, but those days are long gone. Don't forget, what comes up, must come down... and in this case it's like throwing a tomato. You throw it up, and when it hits the floor...SPLAT


Josee Gagnon
said

Well said FSN. WestJet is the comic Seinfeld detests in one of his shows because the other leeches off him (Seinfeld's talent). Same story for WestJet, they typically wait for Air Canada to take the lead only to follow in Air Canada's footprint. And then there's the biased media that love to hate and write about big bad Air Canada.


Bubba
said

What does it matter how much profit they made? Westjet is still cheaper than Air Canada and still manage to turn a profit where AC can't. I'm not sure about you, but I don't know too many companies that are in business to break even (or run a loss year after year)? If you want to complain about the cost of fuel, look to the oil companies. Have a look at their profits and try to explain why the price of fuel is so high.

I agree with FSN, If you don't want to pay, Don't fly.


Ian Yellowknife
said

Air Canada has been bailed out by the Government, How many times? By our tax money and they are by far the worst service provider in the ski. I would rather walk than take Air Canada and I'm sure besides the people that fly Exec Class through there company that most people agree.




Still a WJ fan
said

FSN

Of course WJ followed suit and yet in true West Jet fashion they're prices are still considerably lower. Call them a no frills carrier all you want they still provide better service and flying with them is a pleasure.


Adam Conte
said

Chris, Of course there something we can do about it. REVOLT !!

If we stay quite the government will keep on blood sucking us for our money, airline companies just don’t wake up one morning deciding to raise their price for the fun of it, it is the government that increases the tax on fuel & therefore airmiles forced to increase their price

In Yeman the people did revolt against their government for increasing the price of fuel from 25 cents to 27 !!!!!


Bill Leclair
said

I am all in favour of West Jet adding fuel surcharge. It's the cost of doing business and keeping their planes maintained for safety etc.



bernse
said

Please don't make it a "fuel surcharge" - just increase the ticket price please as it makes it much simpler for everyone involved.


Chris
said

Adam:

I agree with the revolt, I've been saying that all along. But revolt against who? Our Gov't?, the world?

If we win, we will be called patriots, if we lose, we will be branded as traitors. Either way, its a lose-lose situation for all.


GD
said

I hate the notion a fuel surcharge it's just another way that the airlines hide the true cost of flying, I'm ok with price increases just call them that. Stop advertising a flight for $100 and then after all the "extra" charges it costs $400


Mark M
said

Airlines use these "surcharges" to hide the real ticket prices. This way they can advertise prices like "$99.00 one way" then they ding on the surcharges, taxes, nav fees, airport fees, etc. It's an advertising gimmick!!! Just give me the final price on ads, then list all the charges if you want, but don't advertise me a ticket for 100 bucks then charge me $400.00 when I pay all fees!!!


Captialism is killing us
said

Yeah, this is just a wake up call that Captialism is nothing but destructive to our future. Same story goes with rising gas price yet they post other record-breaking profits. I don't want this beautiful country become hard-captialism as WE see in USA which turned out to be bad idea. Shortly we may start seeing foods prices being charged for some lame subcharges. Etc. ETC. Wake up people - Captialism is not alway good. This is what you get.


David
said

I booked our family vacation last Wednesday to Disneyland mid-September with Westjet and the very next day they raised the same vacation package 550$ so that is $183 per head....Ouch for those who booked last Thursday.


acc
said

what those who seem to understand why both westjet and air canada need to add a fuel surcharge seem to miss the bigger picture: while it is true that the american carriers have also added such a charge, they simply are not as much as air canada. for example, if you were going from ny to sf, the total surcharge would be $20 on delta, and $120 on air canada (for a similar flight from vancouver to toronto..). ultimately, this comes down to competition among airlines - air canada knew that they could do it without another large airline undercutting them; westjet is after all, just 'little brother'. the only way to ensure canadians have a fair shake is to open up canadian domestic routes to carriers from other countries - lets see how tough air canada is when faced with delta air flying the same route and charging a $20 surcharge instead of a $120.

(notice also that air canada apparently is not charging a fuel surcharge for international flights - i wasn't aware the fuel used for flying to russia/china/brazil cost any less than fuel on domestic routes - has air canada ever explained this phenomenon?)


Tara
said

WestJet's fuel surcharge is still less than AirCanada's. The difference in fares between the airlines is going to get greater and greater. I will still fly, but I will take the airline that it is going to cost less. Very simple.


Michael
said

I agree, if you don't like it...don't fly. I also agree that WestJet still puts the customer first and I have had nothing but praise for the little air line that *can.*

My question is while automakers are being forced to make vehicles more fuel efficient...is the same thing being done with the airlinemaker industry? Is Virgin Airlines the only one that is trying?


Amy
said

At least the Westjet fuel surcharge is reasonable. Air Canada's surcharge is just crazy. Now I know why I never fly Air Canada.


Roger T
said

That is great news, now that the economy is at a stall and people are travelling less. Hopefully, Air Canada and West Jets are the next businesses to go bankrupt. Can't wait for that day to come for the air line business to fall and than businesses will listen to consumers on their greedy price hikes.

Saves comes before the economy!



Nicole
said

Will still fly West Jest any day over AC and that is with or without the fuel tax increase...at least I know that my luggage will get from point A to point B, rather than get it delivered by taxi...that also is a fact of life if you check in luggage with AC...No I am not bashing AC, I am just stating a fact..In anticipation of this increase, I booked(3)planned flights early, got great seat sales with Westjet, and this 400.00 cheaper than it would of cost me with AC... and this before the implementation of the fuel tax. Costs me more to fly from the East to Central Canada than it costs me to fly to Europe...go figure!


Doug
said

The fact of the matter is, if you get on a seat sale, it can still be cheaper than driving. I just flew return from Calgary to Regina to visit my mother for the weekend. It cost me a total of $330 with WestJet. Another $20 each way would have still made it worth my while. My SUV would definately burn that much in fuel, not to mention the 16 hours of driving... I'll still fly WestJet.

Rob
said

FSN, you're right. It was unfair for us to be bashing Air Canada for it's surcharges. Now we'll just have to bash them for changing our connections, over-booking, cancelling flights, losing our bags... you know, the typical Air Canada crap!


Edb
said

To FSN:
Allow foreign competition in Canada and and our 3rd world "national" (Quebec) airline will loose its monopoly very fast!
West Jet is at least a breath of fresh air and an attempt at choice.


Andrew
said

For the last 2 years, I have been listening to people say that gas prices should be higher to help protect the environment. Survey after survey showed that Canadians "wanted" higher gas prices, because we were "environmentally responsible".

David Suzuki and Al Gore described how every person they talked to wanted a gas tax. No one disagreed with them; everyone just nodded their head in synchronization.

So here is the lesson to everyone. If, for two years, you tell someone you want to be charged more for a product, chances are they will eventually charge you more.

Try it the next time you go to a restaurant. tell the host that you want to be paying more for your meal, they will most likely happily oblige.


Wise Wajid
said

It takes one airline to take the bulls by the horns and it seems that only Air Canada can do that. West Jet appears to be a 'follower', once the public and the media has vilified A/C. Fuel surcharges are obviously necessary. Worst Jet has its problems too, the media is just more quiet about reporting them.


Daniel H
said

Firstly to those who are condemning this cost, what do you want for nothing? Neither I nor anyone else who invests their hard earned money owes you anything. I don’t think you even have a clue where the world would be without others investing to earn a fair return on our money. Do you know what we are risking? You may see large numbers when you look at the profits, but there are much larger numbers in the investment!

Secondly to the airlines, slow the planes down more and get the savings. Project ahead so that you minimize the times waiting to land. It can be done.



John
said

I can't believe the ignorance of the general public on this issue. Airline ticket prices have done nothing but go DOWN in the past 30 years. Could you have afforded a Toronto/Vancouver fare in 1978? Even at todays wages the answer to that question for most Canadians is a resounding NO!

It's only due to irresponsible operators that the price of flying has plummeted as it has in the last three decades. Companies like Jetsgo and Royal who offered $1 flights have perverted passengers perceptions of what the cost of flying really is... not to mention the price of flights on US carriers who have 10 times the population and smaller geography which helps get the volumes they need to keep ticket prices lower.

Air Canada would not even be around today if not for big cash infusions from our government and huge concessions on the part of the union in recent years.

The cost of maintaining an aircraft (that you do not want to fall out of the sky) is not cheap. The sheer labour involved in just getting an airplane to a gate is actually quite remarkable too. And it's not as if your bag magically appears in the aircraft after putting in on the conveyer belt at he ticket counter, it travels a couple of miles and is personally handled by several employees. As well, airport landing fees for certain destinations are insane.

Air travel is not a bus ride, though it may seem more like one these days because the desire for low fares has changed the demographics of the product.

Don't be fooled by the discussion of profits either. Would you want to fly an airline that was just breaking even? The point of business is to make money and I think that Westjet has done a spectacular job of saving costs for both it's traveller and it's share holders. If they were only concerned about making money, there'd be a little curtain partway up the cabin shielding those who were willing to pay several times the cost of an average plane ticket from the guy complaining that he had to buy his potato chips.


Raymond
said

Josee:

WestJet announced that they were considering a fuel surcharge several weeks ago...before Air Canada did. You can defend AC all you want...it still doesn't change the fact that they are a poorly managed airline.


JP
said

Calling a surcharge makes perfect sense: it allows you to know who/what to blame.

A $45 "fuel surcharge" lets you blame it on fuel prices. A "$10 airport upgrade surcharge" lets you blame it on Pearson Airport.

Eventually, the ticket allows you to blame everyone EXCEPT the airline for the price.


raven48
said

The airlines industry is just that, and industry. And with any industry service or not, the bottom line is costs. If it costs and industry more to provide the same service, then they will have to reduce costs somehow. Now, having said that, the airline industry is perhaps more affected by rising fuel costs than other industries, given the volume of fuel consumed. But, if the airline industry wants to cut costs, then perhaps not biting the hand that feeds you is better. Maybe, just maybe if the airlines industry put on their thinking caps, they could come up with an ingenious solution and give their tarnished reputation a much needed polish. Just think of the PR and the new market that would be produced. Hmmmmm......


Evan in Athabasca
said

Just an FYI Michael,

"Is Virgin Airways the only one trying to become eco-friendly?"

West jet has the newest fleet of jets in North America. I think they deserve credit for this.

As for fuel surcharges for international flights, gas costs are cheaper in other countries.

This points to the government, unfortunately this has to do with helping the environment. See the Kyoto plan working now, hit the people in the wallet. This is not fair treatment, since the rich can still travel on a whim. While the working man has to groan once a month when they would like to travel and the cost keep escalating.

Just my thoughts.



Steve
said

There is a new reality that has been setting in for the past few years, and its pace of arrival has quickened.

Within the next five years, air travel will be priced out of range for most people. Most businesses will cut back on their travel and airlines will be laying off huge numbers of employees as they cut back on flights.

Oil prices are only going to keep climbing.


Brian
said

Yeah revolt guys, great idea. Viva la revolution...Che Guevara for ever..etc..

On a more serious note, this is not the airlines fault. Like any business, they can't exist in the long run if they don't remain profitable. I doubt many posters here work for free. This is simply the reality of their business at the moment, and customers don't really have much choice. Neither do the airlines.

And all this nonsense about capitalism being an evil menace that is destroying the world? Please..capitalism made Canada the top ranked country in the world on the Human Development Index 10 times, more than any other country! It may make your plane tickets more expensive, but it also enables you to have good food on your plate, excellent free health care, and a house to live in. Grow up!!!


AylmerBob
said

FSN is right:
"Don't want to pay?
Don't fly."

Don't want to pay too much, don't fly Air Canada if there is any other choice.

Choice is good.

I will fly Air Canada if there is no other choice, or if there prices are considerably lower.

For same price, I'll pick the alternative. I've had about all I can take of Air Canada's arrogance and terrible service.

Compare the "fuel surcharges" among airlines - it seems Air Canada is looking for a "cash grab" to bail out their negative balance sheet.




Heather
said

I just put gas in my little 07 Hyundai Elantra yesterday. To fill it in Dec06 was $32. To fill it yesterday was $54. And to think - it doesn't even achieve liftoff!!!

I don't begrudge airlines charging more because of higher fuel costs. I don't think it should be a "surcharge" though, but included in the cost of a ticket. Surcharges are deceptive. Saying "it costs us more so it'll have to cost you more and we apologize" is at least (kind of) honest.


Kevin Duffy
said

Planes today are more fuel efficient then planes from 20 years ago. Westjet did update most of their fleet and Air Canada while having a larger fleet is a bit behind in it's updating, although they are still have a newer fleet than most American carriers. I'm surprised American Airlines can still afford to fly people with those old inefficient MD-80's they still fly.


Marty
said

Nicole
Great, when will West Jet start flying to Europe?

At least West Jet goes to Whitehorse and Yellowknife, no wait they don't. Bet the companies like Virgin that will replace Air Canada will fly those money making routes.....

Meanwhile I will fly either, West Jet and Air Canada are both great Canadain companies.


Flyby
said

I invite all those that are complaining about the fuel surcharge to hop in their vehicle and drive that return trip. If you can do it for less than what the airlines are charging, good for you (take into account vehicle wear & tear, hotel costs, meals, your time, and oh ya....the fact that it's safer to fly than drive).

JP has a very good point. I would much rather know who to blame. I prefer the transparency of the final price.


Ali Baba
said

Let's all keep a watch to see if any of the airlines will lower the surcharge if the price of oil drops... NOT A CHANCE, it's there for good !!!


Raj
said

At least West Jet said they were going to do this Air Canada just stuck it on the ticket price.Why be sneaky??


George
said

To acc: Actually they do have fuel surcharges on international flights. For example, it's around $200 for Hong Kong, and $300 for Tokyo.

Go on Air Canada's website and do a fake booking to some international destination. They will show you what the surcharge is...


skmtl
said

While I don't like it it is necessary. What should happen is that we pay a charge for fuel the day of the flight. How many of us would be in business if we did not cover our costs?


Aric
said

I urge you all to put yourselves in the shoes of airline executives. I am a flight school student working towards my licenses to become an airline pilot and I am faced with fuel surcharges as well. FOr those of you who own a company, what is your purpose? Its probably to make money. If you started losing money for something that can be controlled you would add a fee as well. Instead of arguing over what airline is better lets try turning your anger to the soaring profits of the oil companies around the world. I think that would be a more productive use of all your time.

Oh, shop around too. Air Canada takes the title the "low cost carrier" on lots of its routes comapred to Westjet.


GM
said

Marty

WestJet does go to Europe now but I think it might only be to London.


hjm
said

What we need is a standard. Maybe it should be based on a combination of fuel cost X distance X weight of luggage X luxury or economy seat FOR ALL FLIGHTS. This little game of booking early or late for the "SEAT SALE" and intentionally overbooking a plane and all the other little games just drives me crazy. Oh yes and you never know the price online until you go through all the taxes etc and it turns a $99.00 special to $350.00 after taxes. Where is the transparency of pricing we were promised. I can take a bus or train and usually can guarantee a price but with airlines it is always a crap shoot never the same price and always no accountability to anyone. I feel totally at the mercy of some accountant in Montreal or Calgary who could care a less about my travel enjoyment. The airlines don't care about direct flights either they book them through Toronto the biggest fuel wasting airport because of all the delays. And while I talk about wasting fuel and killing the environment and wasting money on fuel we need hybrid technology on short haul planes (yes hybrid technology would work but nobody wants to create it until we are forced to). There I said my peace I hate flying I used to enjoy it but it now is such a hassle it is barely worth it anymore.


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