SFGate: Germany's Lufthansa to impose fuel surcharge from Aug. 24

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inancial1208EDT0086.DTL
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Monday, August 16, 2004 (AP)
Germany's Lufthansa to impose fuel surcharge from Aug. 24



   (08-16) 09:08 PDT FRANKFURT, Germany (AP) --
   Germany's Lufthansa said Monday it will impose a fuel surcharge on
passenger flights starting Aug. 24 to address the impact of higher oil
prices.
   The airline plans to impose a $2.50 charge per leg on domestic and
European flights and a $8.70 surcharge per leg on long-haul flights. It
described the surcharge as a temporary move, but a company statement did
not say how long it might last.
   Lufthansa, which follows competitor British Airways in imposing
surcharges, said it had been able to avoid the measure to date partly as a
result of hedging its fuel expenditures on futures markets. However, it
acknowledged last week that soaring oil prices were having a "tremendous"
impact on costs.
   "The high prices for crude oil and kerosene which have persisted for
several months are a burden on the airline's expenditure side and demand a
response," the company said Monday.

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Copyright 2004 AP

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