Carmichael calls for “trigger point” to remove airline fuel surcharges

Orkney and Shetland MP, Alistair Carmichael, has warned in Parliament that if airlines implement fuel surcharges as a result of the conflict around Iran, they should also publish a “trigger point” for when prices will be reduced again.

Speaking during Transport Questions in the House of Commons, Mr Carmichael noted that many airlines have begun to add surcharges to reflect rising fuel costs due to attacks on energy infrastructure in Iran and its neighbours, and a partial blockage of the Strait of Hormuz – and called on the government to set out its own position on how such surcharges should be removed.

Speaking in the House, Mr Carmichael said:

“Airlines are already adding fuel surcharges to ticket prices as a consequence of current events. That may not be surprising, but does the Secretary of State agree with me that, if they are going to do that, they should at the same time publish a trigger point, so that customers will know when those fuel surcharges will be removed from ticket prices?”

Responding for the government, the Secretary of State for Transport, Heidi Alexander MP said:

“The right hon. Gentleman raises an interesting question, but I reassure the House that, in our many conversations with airlines and airports in recent weeks, we have not been told of any immediate disruptions to jet fuel supply. However, we will continue to monitor the situation closely, and work with airlines and jet fuel suppliers to understand what mitigations may be required should any disruptions arise.”

Reacting after the exchange, Mr Carmichael said:

“That rising fuel costs are going to hit flight prices is perhaps to be expected given the ongoing conflict in the Middle East. We all know, however, that these prices often seem to rise like a rocket and fall like a feather. The government needs to keep a firm grip on these issues and ensure that flight operators – no less than energy suppliers and others – know that they cannot use this crisis as an excuse for unfair trading practices.”