FlySafair in March added a surcharge to its most popular routes in response to expected spikes in the price of oil.
FlySafair’s tickets will be coming down as the airline has decided to cut its additional fuel levy.
After conflict broke out in the Middle East in late February, FlySafair introduced a dynamic fuel surcharge to mitigate against expected fluctuations in the price of oil.
From this week, the levy will drop by just over 40% from their March-highs on the routes between Johannesburg, Cape Town and Durban.
FlySafair on Wednesday said the cost and availability of A1 jet fuel had improved in recent weeks, allowing for “refining margins” related to jet fuel and crude oil prices.
“We’re encouraged to see some relief in jet fuel prices, and we’re pleased to be able to pass that benefit on to our customers,” said FlySafair chief marketing officer Kirby Gordon.
“When we introduced the surcharge, we committed to reviewing it weekly and reducing it as soon as conditions allowed,” Gordon said.
Oil price fluctuations
In the week before the United States killed Iran’s Ayatollah Ali Khamenei, the price of Brent crude sat at US$70 per barrel.
The oil price reached highs of $118 on 29 April and $109 on 15 May, before gradually easing to $88 at the time of writing.
“FlySafair committed to applying the surcharge as a clearly itemised line item, calculated by route to reflect actual fuel consumption and reviewed weekly as market conditions changed,” the airline said.
The airline’s levy added as much as R1 600 to a return trip between Johannesburg and Cape Town and will this week fall to just over R490 per one-way ticket.
However, the conflict in the Middle East is not over, with international news outlets reporting sporadic strikes across the Gulf and difficulties in agreeing a peace deal.
“Jet fuel prices remain linked to global oil markets and geopolitical developments, and FlySafair will continue to review the surcharge weekly and adjust it in line with underlying fuel costs,” the airline said.
How the fuel surcharge has fluctuated since being implemented. Source: FlySafair