UAE airlines have no plans for new charges

UAE carriers say they have no plans to impose new service charges, such as baggage fees, in the near future, despite growing concern over the financial impact of record oil prices on the aviation industry.

Skyrocketing fuel costs, which hit $137 (Dh503) a barrel on Thursday, have affected the economic performance of many airlines worldwide. Aside from hiking fares and fuel surcharges, carriers such as those in the United States, have resorted to charging passengers $15 for the first checked-in baggage and $25 for a second bag.

"At present, we have no plans of charging our passengers for check-in baggage. Free baggage allowance of 20, 30 and 40kg for economy, business and first class respectively, is part of our product offering," said an Emirates spokesperson.

An official from Abu Dhabi-based Etihad Airways told Emirates Business that "rising fuel costs are a challenge for all airlines and remain a significant proportion of Etihad's total costs". The spokesperson added that while the airline continues to monitor the situation on a daily basis, it has no plans to start charging baggage fees.

Housam Raydan, corporate communications manager of Air Arabia, confirmed that baggage fees are not an option for the Middle East's first budget carrier.

"The high price of oil has an effect on airlines and if fuel prices continue their dramatic rise, increasing fuel surcharges becomes a serious option. However, we have no plans to cut capacity or add any additional charges," he said.

Raydan also expressed confidence in the Gulf's travel sector.

"Air travel is the only means of transportation in this part of the world, and as we've witnessed in the past, people [still] travel despite oil price hikes," he said.

Dubai-based Emirates admitted that high oil prices are making a dent in the airline's profitability.

"We are trying our best to absorb the increased operational costs. Our flight-operations team constantly reviews areas for fuel saving and [looks] at ways to further increase efficiency [while controlling] our other operation costs. However, should oil prices continue to climb, we would be forced to raise fares," said the spokes-person for Emirates.


The number

$15
Charged by airlines in the US for the first checked-in baggage and $25 for second