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Singapore Airlines raises surcharges, Cathay could soon. Aircraft orders slowing

8-May-2008

Singapore Airlines has raised its fuel surcharges for the second time in seven weeks as the carrier seeks to offset the sharp rise in fuel costs. The latest increases, of 15-19% depending on the route, takes the increase since Mar-08 on ASEAN routes to 34% (to USD35 per sector), +22% to US/Canada (to USD150 per sector) and +27% on other international routes. That SIA has increased surcharges more rapidly on the shorter segments is interesting and could reflect the softness SIA has reported in load factors on routes to North America recently. [378 words]

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