Caribbean air carrier LIAT is completely removing fuel surcharges from all tickets, the company announced.
The change will take effect March 1, 2016, according to Chief Executive Officer David Evans.
The company’s top executive pointed to the fact that oil was trading at a 12-year low, ending a decade of high jet fuel costs, something which has affected the prices of tickets.
“We are committed to offering our customers the most affordable fares so our Finance team regularly reviews the fuel surcharge levels and whenever changes are decided upon we announce them to the market, Evans said.
The move comes after the company reduced the fuel surcharge by 50 percent at the beginning of last year.
“This will mean that fares will fall by an average of 5 percent,” Evans said. “So, beginning 1st March, customers will only have to pay the airfare and any applicable airport and government taxes when they book a flight.”
Evans said that while oil has been trending downwards for some time, the effects of crude oil price reductions take some time to impact ticket prices.
“The jet fuel price to LIAT is on average 90 percent higher than the crude price and it takes on average three to six months for the crude oil price reductions to be applied in the region,” he said.