Singapore Airline surcharge

In spite of profit concern by delaying of introducing large aircrafts, Singapore Airline (SIA)'s stock quotation is getting high. oil prices soaring which is putting pressure on corporate profits stops and capacity rate tend to grow now. However delay of introducing super jumbo aircraft scheduled within this year, Airbus A380, which has 2 floor seats can affect business management in nearest future.

SIA announced that fuel special surcharge will be reduced by 10% since October 14 which has added due to increase the cost of oil. The reduction of price is the first time since surcharge system introduced. Surcharge for flight between Singapore and Japan will be changed from 60USD to 54 USD. Of course surcharge is charged by US dollars from passengers. The reason of costdown of fuel charge is mainly collapse in oil prices. Portion of cost of fuel was 35% for overall on March, 2006, and 25% in the previous accounting year. Cost of fuel placed an enormous financial burden on its budget. So costdown of oil can contribute to SIA.

For our passengers, these costdown of surcharge can be good news and makes us to fly with SIA more conveniently. In the case of flight between Singapore to Europe, surcharge will be changed to USD 54. I wish other airlines to follow SIA.