Air Canada to raise fare prices, citing higher fuel costs

that next flight on Air Canada could cost you more the airlines top boss warned airfares are going up to help make up for soaring fuel bills Jimmy Lee is here at 4 so I guess we should have expected this more than 40% in the past year Andrew from $47 a barrel this time last year to about $67 this year so that’s the cost of many of the fuels out there from the gasoline that you pump into your car to obviously those giant tankers that fill up jet planes to make sure that they stay in the air now Air Canada CEO warned about this was cost Rising fuel bills I have to be covered partly by the people who are feeling the seats so here’s what he had to say about that we estimate that we will be able to mitigate approximately 75% of the expected 2018 annual fuel price increase true fare increases and caused transformation program in other words by cutting costs for example downsize in the plane so that they fly as full as possible that’s really one way to fly more efficiently money and also by raising fares know that part is a little bit tricky though because you know how people are just love to get the lowest fare possible something about flying that makes them you know look for the bargain the even if it means doing wait so they gradually over the years with everything including and you know that extra bag and pillows and snacks for example that was released where the quarterly report that was released today the fuel Bill we know is often the biggest or the second-biggest bill for any Airline depending on how high fuel costs are labor definitely is right up there but Air Canada is dealing with specifically it says that its fuel prices are up 31% in the past year and I think a lot of drivers can relate we just had the inflation report showing double-digit increase in them in the price of gasoline and how that driving up the cost of living and Eric has had to raise its estimate of where fuel prices will be this year to an average of $0.78 per litre and that’s up 4% from its earlier estimate so that’s a higher quite a bit more that’s a lot of dollars for Air Canada and so it says that it could absorb some of it but already its profits have taken a hit in this late is quarter down by half from a year earlier so you’ve been warned yes it does say that this expect to be it expects us to be a short-term thing but obviously those cost have become Act
Air Canada plans to offset the increasing cost of jet fuel by increasing fares, executive Calin Rovinescu said Friday.

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