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Saudi Arabian Airlines will not increase prices
JEDDAH — Saudi Arabian Airlines has decided not to increase ticket prices despite rising jet fuel costs, says Dr Khaled ben Bakr, the airline's director-general.
"Saudia has decided to bear the excess fuel cost and maintain its ticket prices as they are without change," he was quoted as saying by the Arabic daily Asharq Al-Awsat on Sunday.
The assurance comes at a time when most foreign airlines have decided to impose a special fuel surcharge of SR42 ($11) on roundtrip tickets to international destinations.
Many foreign airlines have already announced fare hikes to compensate for rising fuel prices. According to IATA, international airline companies would incur $83 billion cost in jet fuel this year.
Informed sources said airline companies were also planning to impose SR280 ($74.6) on passengers travelling to certain destinations including Manila, Bangkok and most European cities.
Some airlines had already begun imposing SR76 as insurance and fuel surcharges on roundtrip tickets to international destinations.
According to industry sources, airlines were planning to impose a surcharge of SR280 on return tickets, but they say they do not expect the new tax to have a negative impact on the market as it comes in the off-season after the end of summer holidays.
Sources believe that Arab and international airlines operating in the Middle East would announce a three to five per cent increase in fares soon.
Some airlines in the Kingdom had begun imposing fuel surcharges of SR42 on roundtrip tickets three months ago, and an additional surcharge of SR40 was expected shortly.
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