Soome airline passengers are paying as much in fuel surcharges as they pay for their base air fare, according to Australian research, but thanks to a Commerce Commission ruling, New Zealand passengers do not need an abacus to work out the cost of fares.
Unfortunately, it is not so easy for the travel agents, who say fuel surcharges on flights should be abandoned and it is costing them commission.
Research in Australia by the Flight Centre said some airlines were charging a $A1000 ($NZ$1262) fuel surcharge for a flight from Sydney to London.
Dunedin-based Vincent George House of Travel co-owner Vincent George said fuel surcharges on routes were increasing all the time and in some instances were as much, if not more, than the base fare.
A fare to Europe would have a $900 surcharge in fuel on some airlines.
He said a round-the-world fare, which went through 13 or 14 different sectors, paid more in fuel surcharges and extra costs than in the actual fare.
Costs such as airport fees, customs fees, and security fees were included in extra charges.
A ruling by the Commerce Commission a couple of years ago said that all fares in New Zealand had to be show the full cost of the fare, so people knew what the flight cost, Travel Agents Association of New Zealand chief executive Paul Yeo, of Wellington, said.
But Mr Yeo said that did not make it easy for the travel agents, who had to take into consideration the fuel surcharge and other charges when calculating a fare.
Flight Centre in Australia said Japan Airlines would soon become the first carrier to charge travellers a $A1000 ($NZ1262) fuel surcharge on its popular Sydney-to-London route when its latest surcharge increases were applied from July 1.
Mr Yeo said airline companies paid commission on the basic fare and not the surcharge, so travel agents were missing out.
He said Air New Zealand was one of the best airlines in having clear prices.
"It's no different than any other travel. You don't get into a taxi and at the end of the ride they say, 'right, here is the fare, and you have to pay another $5 for a fuel surcharge'," he said.
He said it created a lot more work for travel agents, yet the commission did not increase.
Flight Centre managing director Graham Turner said the overseas airlines were defying the Australian trend, led by Qantas Airways Ltd and Virgin Blue Ltd, of increasing base air fares to reflect fuel price rises.
"At a time when most experts are predicting further fuel price rises, surely the time has come for fuel to once again be included in the base air fare," Mr Turner said.
