Loganair has announced it will add a fuel surcharge to new ticket sales in response to increasing fuel prices across the globe.
On Thursday, the airline said a £3.95 surcharge would be introduced for each one-way journey except for routes flown under Public Service Obligations.
The cost will be included in the price displayed on the Loganair website, however the airline added the charge will only apply to new tickets and not existing bookings.
The airline said the decision had been made due to the “economic consequences” of Russia’s invasion of Ukraine, which has seen the price of fuel skyrocket in recent days.
However, Loganair said the surcharge would be cut if the price of oil falls below $110 per barrel for six consecutive weeks and removed completely if it falls below $85 per barrel for six consecutive weeks.
Jonathan Hinkles, Loganair’s chief executive, said: “Loganair has already fixed the price for over 50% of its expected fuel volume for the 12 months from April 1, 2022, using financial hedging instruments.
“For the remainder of our fuel volume, the rise in global oil prices equates to an additional cost of £4.7m in the coming year at today’s oil price.
“It is simply impossible for us to absorb this impact, especially where airlines including Loganair still face significant uncertainty over the pace of recovery in passenger numbers from the pandemic.
“We’ve realistically no option but to introduce a fuel surcharge on new ticket sales, which will apply to new sales from March 21 onwards. Many other international airlines have already taken this step.
“This isn’t something that we wished to do, nor is it a step that we have taken lightly. Although it will be unwelcome, I trust that this represents a transparent response to worldwide circumstances which is preferable to an opaque, and permanent, increase in basic air fares.”