Fuel surcharges would increase between USD$12 for short-haul flights to US$33 for long-haul flights, effective March 24
El Al Israel Airlines said last Thursday it was raising fuel surcharges for the second time in a month due to oil prices reaching US$110 a barrel.
Israel's air carrier said in a statement that fuel surcharges would increase between USD$12 for short-haul flights to US$33 for long-haul flights, effective March 24.
On February 26 El Al raised fuel surcharges by US$5 to US$16 and increased fares by 3.5%due to rising oil prices and as the dollar continued to weaken against the Israeli shekel.
The airline suffered stiffening competition in the past year from charter airlines, the entry of cheap airlines that market tickets at low prices while providing a similar quality of service; and from the collapse of the dollar/shekel exchange rate, which pushed up the company's salary expenses in dollar terms. The airline had raised fares by 4% at the beginning of 2008.
Fortunately for El Al, the higher fuel cost and ticket prices has not yet affected demand, as these were offset by the collapse of the dollar/shekel exchange rate.