Sep 27, 2000 High fuel prices take toll Several airliners make an attempt to avert disasterous financial results by increasing their fuel surcharges. Northwest Airlines Cargo followed Royal Dutch KLM, for example, when the American-based airliner announced an increase in fuel surcharge for European-origin trans-Atlantic shipments. The current surcharge of 10 euro cents per kilo will rise to EUR 0.17 per kilo, as from 1st November. In countries where rates are denominated in US dollars, the increase is from USD 0.10 per kilo to USD 0.15. Mid September Northwest Airlines Cargo warned to increase its fuel surcharge on North American origin trans-Pacific and trans-Atlantic shipments to USD 0.15 per kilo.

Airborn Express will increase its fuel surcharge by 1 percent, to be effective on 16th October. The new rate of 4 percent will be applied to domestic, Canadian and international express shipments. In Asia air cargo rates climb as well. Several airliners saw in the peak period and the high fuel prices reason enough to boost their rates for shipments from Singapore by 5 to 8 percent. Rates to Europe, the United States, Hong Kong and Tokyo are up between 60 cents to USD 2.30 a pound.

Its seems that increasing of fuel surcharges and other measures are a little too late for Dutch-based Martinair. The airliner had to announce that it will cut 320 jobs, due to growing losses. So far Martinair has lost some USD 32 million this year, because of high fuel prices and the strong dollar.

Source: Journal of Commerce/Cargoweb

http://www.cargoweb.nl/bin/news.exe?ACTION=SHOW&ID=8609

-- Martin Thompson (mthom1927@aol.com), September 27, 2000

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The airlines bottom lines, which will soon be depicted in the third quarter earnings reports, coming up next month, should be something to see and marvel at.

-- Uncle Fred (dogboy45@bigfoot.com), September 27, 2000.