Singapore Airlines axes fuel surcharges

Frequent flyers will need to outlay less cash as controversial surcharges are folded into base fares.

Changes for Krisflyer members.

Singapore Airlines and regional subsidiary SilkAIr have become the latest carriers to abandon controversial fuel surcharges and reduce the cash component of frequent flyer redemptions. But the airline is also ending a 15 per cent discount for online redemptions and bumping up the number of miles required to redeem tickets on some routes, including Singapore-Sydney and Singapore-San Francisco. Travellers redeeming a Sydney-San Francisco business class flight, for example, can now redeem an online ticket for as little as 68.000 miles (80,000 miles through a call centre) but this will rise to 88,000 miles. However, they will save $US327 in fuel and insurance surcharges and just pay airport taxes and fees. Singapore said Wednesday will fold fuel and insurance surcharges into base fares from March 28. The move will be implemented progressively be region and is due to be completed by May. The decision will make little difference to people buying airfares as both carriers have for several years been quoting the full price payable, including taxes and charges. “This will not result in immediate changes to “all-in” fares, which will continue to be determined by market supply and demand, but is intended to provide a more simplified fare structure for customers,’’ the airline said in a statement. The big difference will be in the surcharge people pay on KrisFlyer frequent flyer program redemption bookings with the fuel and insurance surcharges no longer applying from March 23. Balancing that gain is a decision by Singapore to axe a 15 per cent discount for redemption bookings made online rather than via a call centre. The airline is also adjusting redemption award charts in the Saver category to boost the required miles on some routes but not others. An example on the airline’s website shows that someone redeeming a Singapore-Sydney one-way fare before the change could pick it up for 21,250 miles if booked online (25,000 miles through the call centre) plus $US153 for the fuel and insurance surcharge as well as airport taxes and fees. Under the system starting March 23, it will cost a flat 28,000 miles plus airport taxes and fees. Business class one-way on the same route sees a saving of $US172 on insurance and fuel surcharges but sees the number of miles required for a redemption increase from 46,750 online (55,000 through the call centre) to 58,000. Singapore-Shanghai one-way, on the other hand, loses the 15 per cent discount for online redemptions but the miles required stay at the call centre level of 35,000 for business class and 20,000 for economy. Travellers on this route also gain from the end of the $US172 business and $US153 economy fuel and insurance surcharges. See the examples.