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Issue #586 | Latin America Trade | Canada Ports

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American Airlines Cargo division announces increase in fuel surcharge

By: | at 08:00 PM | Channel(s): Air Cargo  

American Airlines Cargo division announced an increase in its fuel surcharge from $0.55/kg to $0.60/kg, or equivalent currency, for most US-origin international shipments and from $0.22/lb to $0.24/lb for US domestic shipments, effective Aug. 2, 2007. The fuel surcharge fee will be applied to shipments on a per-kilogram basis for most non-US-origin shipments, subject to regulatory approval where required.

Changes to the fuel surcharge occur when the American’s fuel cost index equals, exceeds or falls below specific thresholds for two consecutive weeks. American’s current fuel index reached 215.81 for the week ending July 13, 2007, passing the trigger point of 211.00 for the second week.

American’s fuel index is based upon an average of the five jet fuel spot markets. It was established in September 2002 to help American and its customers monitor and respond to changes in jet fuel costs.

The American Airlines Cargo Fuel Index is based on the weekly average spot price of kerosene-type jet fuel as reported by the US Department of Energy in the Weekly Petroleum Status Report. The index is calculated by averaging the five current spot prices in the New York Harbor, US Gulf Coast, Los Angeles, Rotterdam and Singapore markets.