Thursday, February 26, 2009

£15 London-New York return plus taxes

Yep, that's where airfares have gone. Virgin Atlantic announced today it was selling seats in riff raff class at the lowest marginal price in ages. £15 is barely enough to cover the cost of loading an additional meal.

Now to be fair, another £50.30 comprise taxes and levies from the US side, and £55.30 comprises taxes and levies in the UK, plus £106 Fuel surcharge (which goes to Virgin Atlantic).

So it's really £121 fare plus taxes. Still this is a fare to simply recover costs, and let's be clear airlines don't make money on the Atlantic in economy class. A full economy class section loses money for Virgin Atlantic if it carries nearly no one in premium economy class and upper class.

So it's not just the drop in bankers flying the Atlantic.

and don't forget, landing slots at Heathrow are allocated somewhat on a "use it or lose it" provision, so Virgin has to fly the flights to hold onto the slots - which of course are worth a fortune when there isn't a recession!

1 comment:

pdq said...

I have booked London to Milan return in April for AUD12.00 plus taxes/surcharges on Lufthansa (on their website selecting Australian residency). What seemed odd was that was the only fare option available. I called Lufthansa and it was confirmed to be correct. Of course there is AUD216.00 of taxes and surcharges.

I normally approach the Lufthansa experience with pretty low expectations, but at at the price my expectations are so low that I am sure I will be satisfied.