Nova Scotia Business Journal: The Nova Scotia Business Journal: Iceland - Icelandair cuts winter flights to Halifax

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Iceland: Icelandair cuts winter flights to Halifax

“In order to secure future growth in Nova Scotia and despite our intended goal of year-round service, Icelandair regretfully announces it has become necessary to suspend winter service from Halifax, Canada. This adjustment is a reflection of broader strategies within the entire company; departments, employee numbers and schedules are being decreased in an attempt to streamline work processes and reduce costs. These actions are the result of external economic factors that could not be foreseen when the service was launched. As scheduled, Icelandair will operate three flights weekly through August 30, 2008, with two flights weekly until October 20, 2008, when service will be suspended. Service will then resume with two flights weekly beginning May 14, 2009, and with three flights weekly beginning June 13, 2009, until August 31, 2009. Flights will then return to two flights weekly September 1, 2009".

The Times: Air surcharges for fuel soar (by more than 100%) - Valerie Elliot and Christine Buckley

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Air surcharges soar (by more than 100%) - Valerie Elliot and Christine Buckley

Virgin Atlantic is imposing new charges today and, from Tuesday, British Airways long-haul passengers will have to pay euro 275.00 (US$ 428.00) on top of the ticket price simply to cover the cost of fuel. Other airlines, struggling to cope with fuel bills but wary of raising ticket prices for fear of losing customers, are introducing new fees for services, such as baggage handling, more leg room and even a window seat. The BA increase, the second in a month, means that a family of four booking a trip to the West Coast of America on Tuesday will have to pay euro 303 ( US$ 401) more than they would have done yesterday. Shorter flights will also cost more, but those who have booked and paid for their trips before will escape the extra charges.

Note EU-Digest: As of May 23, 2008, jet fuel prices were up nearly 98 percent from May 2007, according to the International Air Transport Association. To put this into perspective, fuel now makes up roughly 40 percent of the ticket price of most airlines, up from 25 percent last year, according to the Air Transport Association.