Finnish airline Blue1 was the first to announce the rise in fuel surcharges, which will rise from 22 euros to 27 euros in two weeks’ time.
The price of aviation fuel has risen by around half in the last year. In the last week crude oil prices passed the hundred dollars a barrel mark, adding further pressure on prices. The projected price of a barrel of aviation fuel in 2011 is 110.50 US dollars.
According to Finnair’s acting CEO Peter Gabrielsson, fuel makes up nearly a third of the airline’s costs, and a ten percent difference in aviation fuel costs makes a big difference to the airline.
Finnair will announce changes to its fuel surcharge structure in the coming weeks. They are likely to affect long-haul travellers most. Lufthansa has already raised long-haul costs by around 10 euros. Other airlines to have announced rises include British Airways, Air France and KLM.
Kaleva Travel Marketing Manager Terhi Hakulinen says that fuel costs could make up a fifth of the ticket price. She believes that prices could rise even more.
It's unlikely that airlines will pass on all of the recent increases in fuel costs to their customers. Market competition will see to that, with more routes from Finland to the rest of Europe to be introduced this spring, including some from budget airlines that have said they will not introduce fuel surcharges.
