Oil has been falling to below 120 a barrel in large part due to the stronger dollar. My question is: If oil continues to fall, will airlines get rid of some of their stupid nickel and diming (1st bag charges, charges for drinks)? I remember NWA saying their service fees for issuing frequent flyer tickets was temporary. No one knows if they are really serious about it being temporary but begs me to ask if various fees/charges may be rescinded, if oil continues to drop.
Most airlines have been serious about “decontenting” for a long time now, the fuel prices are what caused them to finally bite the bullet and announce a lot of those things.
The thing you will probably see drop (or stop rising) is base fares.
Oil prices have been falling because China shut down so many factories and forced so many trucks and cars off the road to try to eliminate the pervasive smog covering Beijing. Anybody want to take bets that prices will rise in a couple weeks when China’s demand for oil rises again?
If it were to happen (I still think it’s doubtful), what would probably be like a ripple effect similar to how they were implemented. If UA dropped their baggage fees, US would probably follow.
They also rescinded their value-added tax exemption, so their manufacturing base is taking a hit. I know we’re moving a fair amount production out of mainland China to Mexico and Malaysia who have better efficiencies once the Chinese subsidies are removed.
Thanks and WOW. When I left Massachusetts about 2 weeks ago oil was at 115, It is down to 109. I always get giddy whenever it is down. So, I have been giddy for the past 2 months.