Airlines pass on costs to flyers as fuel prices reach record highs

Some go to absurd lengths to improve the bottom line — charging legroom premiums, cutting baggage allowances, even charging for pillows

Out went the free meals and in came the fuel surcharges, excess baggage fees and $2 pillows. In the brutal airline business, every penny counts, especially when fuel costs reach record highs.

The price of aviation jet fuel is more than 30 per cent higher than it was a year ago. The International Airline Transport Association (IATA) estimates every dollar added to the price of crude oil, which could go as high as $80 US a barrel this summer, adds $1 billion US to the airline industry’s costs.

But airlines are going to absurd lengths to cut costs. Earlier this year, Air Canada tested a theory that planes stripped of paint fly lighter and, therefore, cheaper. The plan was soon scrapped. Last month, it revealed it was considering carrying wine in a box versus bottles as a way to lose some weight and save on wine costs. And last year, the airline got international attention for piloting a pay-for-your-own-pillow plan — a $2 Comfort Kit with a blanket and inflatable pillow.

At least Air Canada has a pillow option. American Airlines, one of several airlines to eliminate pillows, estimates it saves $700,000 US by eliminating them.

Vancouver Sun