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23-Oct-2009 12:40 AM

Airlines turning back to fuel surcharges

Analysis

As oil rose briefly above USD80 per barrel this week, airlines are again considering their fares and fuel surcharges, to take some of the sting out of the increasing costs. While fuel costs in 1H2009 were as much as 50% lower year-on-year for many airlines, the USD10 increase in fuel prices since late Sep-2009 has raised the spectre that fuel costs could again spiral out of control, as speculators bet on a global economic recovery.

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