Fuel surcharge
A fuel surcharge is an additional fee added to transportation service costs and applied by providers. The goal is to cover the fluctuating price of fuel. It’s a common practice in the travel and logistics industries, where fuel costs are significant and variable.
Airlines, cruise lines, and transport companies apply fuel surcharges to adjust for increases in fuel prices. Companies may adjust surcharges monthly, quarterly, or when fuel costs experience significant shifts, helping ensure their pricing aligns with current fuel expenses.
The fuel surcharge is calculated as a percentage of the total fare or a flat fee based on distance, weight, or other factors.