AirNZ ripping passengers off?

[happytraveller]

Getting VERY annoyed with AirNZ for charging fuel surcharges now that the oil prices are at a 3 year low, and also below US$40 a barrel. I have been trying to find cheap tickets back to NZ, and AirNZ were asking 320 Euros, or about NZ$ 780 fuel SURCHARGE. Wrote several emails to AirNZ as they keep charging this, but they just reply saying what good value (!!!) their fares are. They also referred me to the attractive prices to the Pacific Islands, although that it not a lot of use to me when I want to fly home from Europe.

Bottom line is that the ticket is about 80% more expensive this year (same route and almost same dates) as before, yet oil is far cheaper. Seems like AirPoints have also disappeared from many of the 'cheap' tickets and also stopovers (which were previously free) are now sometimes at extra cost. AirNZ are keeping the fuel surcharges high, but until they reduce them, I for one will hold off buying a ticket. If NZ is suffering from a lack of foreign tourists this year, then AirNZ must take some of the blame.

What a rip-off by AirNZ.

Smooth landings (and no fuel surcharges).

[AlisterC]

Unfortunately airlines buy their fuel in advance - at prices that by buying in bulk, they get a good discount on the going rate for the time. From memory, the last Air NZ fuel buy up would have been at the more inflated prices than they are now. So, unfortunately for Air NZ, they bought fuel at just the wrong time. The fuel surcharge for them makes sense economically - as they have to cover their costs, but is probably very unfortunate timing when it comes to customers who think the price should be lower as the price now is better than it has been in years.
If you can understand this better than I, they have a page for their fuel hedging information: http://www.airnewzealand.co.nz/aboutus/inv...uel_hedging.htm

[Rebound]

Air NZ Hedged fuel at a higher price than what it is now, if it continues to stay at this price they will make a heavy loss on Fuel. This is why surcharges haven't dropped...

[happytraveller]

I for one am not going to pay 320 Euros fuel surcharge, as I am not going to pay for the mistakes of AirNZ. If AirNZ want to drive passengers away, then this is the way to do it.

smooth landings.

[Alex]

Well, feel free to vote with your feet - I can sorta see both sides of the coin...

Alex