El Al Adds Fuel Surcharge To Airfares

December 29, 2011

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El Al, Israel's flag carrier, said it was imposing another fuel surcharge of up to USD$40 per return ticket on long-haul flights due to high global oil prices.

Beginning January 5, economy passengers will pay another USD$10 per leg on flights between Israel and North America, Asia and Africa, while business class fliers will pay USD$20 more.

El Al said it was among the last of its peers to add a fuel surcharge to airfares, as Brent Crude has reached about USD$109 per barrel.

But the carrier said it would not impose a surcharge on flights to and from Europe.

The new charge was the first since El Al imposed surcharges of USD$45 per leg on long-haul flights and USD$22 per leg on shorter routes on April 1.

El Al posted a 51 percent drop in third-quarter profit to USD$21 million as fuel costs jumped 47 percent to USD$205 million. In response to higher fuel costs, El Al said in November it would lay off 200 workers and streamline operations.

(Reuters)