‘PURE SURVIVAL’: Skyrocketing fuel costs prompt WestJet changes

WestJet says it will be introducing a temporary $60 surcharge for certain bookings and has consolidated numerous flights due to skyrocketing fuel prices. The moves come as some U.S. carriers have also announced higher checked baggage fees to cover the increasing fuel costs.

WestJet says its additional charge will be included with all bookings made with a companion voucher after this Wednesday. The airline also combined some flights on lower demand routes, reducing the number of flights by approximately one per cent in April and three per cent in May. It said most clients have been provided accommodation options due to the consolidations.

Additionally, a fuel surcharge of $50 p.p. will apply to Sunwing and Vacances WestJet Québec bookings made as of April 14 (existing travellers/bookings will not be affected). This surcharge will be included within the regular taxes and fees at the time of booking and is applicable to all Sunwing and Vacances WestJet Québec bookings.

“Fuel is the largest contributor to airline operating costs, and a temporary surcharge helps us manage the recent surge in fuel prices … We will continue to assess the surcharge and adjust as conditions allow,” a spokesperson said on Sunday.

“While airfares can be adjusted and have greater flexibility in pricing, the nature of our companion vouchers does not allow for this same flexibility.”

“People don’t realize how much fuel a plane takes,” says Wayne Smith, a hospitality and tourism professor at Toronto Metropolitan University. “It’s not like filling up your car. You’re talking literally thousands of litres to fly somewhere. 

The professor said, for example, the cost of fuel for a Boeing 787-9 flight from Vancouver to Hong Kong was about $71,485 in late February.

“In mid-March, it was $110, 171 for that flight. It was up almost $40,000 just for that flight. So as the price keeps going up, the airlines really don’t have a choice.”

He said more surcharges might be coming with other airlines and with WestJet’s flight consolidations, travellers can also expect to fly in fuller planes.

“There’s an old joke in the airline industry that’s like, ‘How do you make a billionaire a millionaire? Buy an airline,'” he said. “This is a really tricky business to make money. The surcharges and consolidations are pure survival. I wouldn’t be surprised to see some baggage fees rise along with it. 

U.S carriers

Meanwhile, most travellers flying with United Airlines must also now pay $10 more to check their luggage as higher jet fuel costs driven by the war in the Middle East pushed another major U.S. carrier to increase fees.

The first piece of checked luggage will now cost customers $45 on flights within the United States, Mexico, Canada and Latin America, according to United. A second bag will cost $55.

“This is the first time in two years the airline has raised bag fees,” United said in a statement.

Speaking to investors last month, United CEO Scott Kirby said the rising costs for jet fuel since the conflict began on Feb. 28 had already added roughly $400 million to operating costs. The CEOs for Delta Air Lines and American Airlines reported similar figures.

Some United passengers will still receive a free first checked bag, including co-branded credit card holders, certain loyalty-tier members, active military personnel and travelers in premium cabins. Customers who check bags less than 24 hours before departure will pay an additional $5.

United joins JetBlue, which raised its checked baggage last week by $9 for peak travel periods. JetBlue said that charging more for optional services used by select customers helps keep base fares competitive. Like United, it will continue offering a free first checked bag to some customers.

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