UIA Cuts Fuel Surcharges for the Third Time in last 4 Months

23.04.2009

Ukraine International Airlines announced a further reduction to its fuel surcharges. Starting December 2008 fuel surcharges being the part of the total air ticket price, had dropped down on UIA 30 scheduled directions.

In April 2009 the fuel surcharges were cut by USD 19 (from USD 47 to USD 28) on flights from Kiev and Lvov to Madrid and Barcelona and by USD 31 (from USD 87 to USD 56) on flights from Madrid and Barcelona back to Ukraine.

The Fuel surcharges were also reduced on Kiev-Vienna-Kiev, Odessa-Vienna-Kiev, Kiev-Berlin-Kiev and Kiev-Frankfurt-Kiev destinations.

Fuel surcharges revision both on international and domestic flights is explained by global tendency to the aviation fuel price decrease, which has been on starting October 2008.

According to Sergey Fomenko, UIA Vice-President Sales and Marketing, the fuel surcharges introduction was a compulsory measure, directed on partial compensation of aviation fuel prices jumped up. “We had never covered the amount of the fuel surcharges but had always noted it while calculating the total price of the flight. UIA introduced fuel surcharges when the aviation fuel prices had jumped up in Ukraine and abroad. Meanwhile the Ukrainian carriers, unlike the in-bound airlines are paying VAT to the state budget amounting 20% from the aviation fuel price. UIA position was immediately announced – as soon as fuel price will be reduced in Boryspol (KBP) and in other international airports, the airline will cut down the fuel surcharges”.

The current delay in VAT refund for UIA makes up half a year, thus the airline bears losses because of the fluctuation in the exchange rate.

Ukraine International Airlines officially announce that as soon as Ukraine will restore the procedure of paying VAT with zero fuel rates for the Ukrainian carriers, operating international flights, UIA will immediately cut all fuel surcharges.

For information:
The process of fuel surcharges reduction started on December 15, 2008 when its rate was considerably reduces on domestic and Kiev-Tbilisi flights.

Besides that, on January 15, 2009 UIA cut the fuel surcharges on European directions. For example on Kiev-Helsinki flight the fuel surcharges for UIA passengers reduced by USD 54, on Kiev-Amsterdam – by USD 35.