Emirates drops surcharge

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Emirates has dropped its fuel surcharges on all flights, but other airlines operating in New Zealand are unlikely to lower their fares just yet.

Emirates president Tim Clark said that fuel surcharges on all fares have been dropped, in line with recent falls in fuel costs. The price of all the airline's flights had been raised on April 18 in response to skyrocketing fuel prices prompted by conflict in the Middle East.

"We promised our customers from the outset that we would eliminate the surcharge as soon as it was commercially viable and this has now been done," he said.

An Emirates flight to Europe will now be $50 cheaper. This change made the cheapest Emirates flight around $2649 (before airport tax) for a return trip.

Analysts were surprised at the move, but said it would be months before the true cost of fuel price spikes would be reflected across the market.

Air New Zealand said yesterday that its fares would not be lowered in light of the drop in fuel price. The airline raised its fares between 7 to 8 per cent in March after jet fuel rose from US$114 [$155] a barrel to US$130 a barrel, adding almost US$10 million a month to operating costs. It is now US$142 a barrel.

This raised the price of "flexiplus" fare to a Auckland to Christchurch flight by $18. Spokesman Mark Street said the carrier had not raised its fares in two months, despite the cost of fuel changing significantly since then.

Qantas raised its fares last month to recoup losses from fuel costs. Its domestic, regional and Tasman fares rose 5 per cent last month - its fifth increase this year. The airline said in April it would be some time before surcharges were cut.