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Transport / Loganair to introduce surcharge in response to rising fuel costs

Photo: Shetland News

LOGANAIR will be implement a surcharge of £3.95 per single journey on new bookings to combat rising fuel prices.

Managing director Jonathan Hinkles said the charge will come into force from 21 March.

He told a meeting of the Shetland external transport forum on Thursday that the surcharge will be reduced or removed once oil prices drop to certain levels.

Hinkles explained that the rising price of oil, which has been affected by Russia’s invasion of Ukraine, meant the airline could not absorb the higher costs – particularly with passenger volumes still at lower levels due to the Covid pandemic.

This is expected to have a £4.7 million impact on the airline in the coming year.

Hinkles said Loganair has been able to keep the surcharge at £3.95 because the airline has effectively bought half of its fuel for the year ahead.

The surcharge will only affect new bookings and not existing ones.

If the price of Brent crude oil falls below $110 per barrel for six consecutive weeks, the surcharge will be halved; if it falls further, below $85 per barrel for six consecutive weeks, then it will be removed completely.

Hinkles also confirmed that Loganair has offered its assistance to councils regarding the humanitarian side of the Ukraine invasion.

He said flights would be offered free to charge for instance to someone leaving the country who may need a flight in the UK.

Loganair has also offered up its freighter plane if it is needed for any aid efforts.