Air France-KLM deploy new fuel surcharge method in September

AIR FRANCE Cargo and KLM Cargo have modified their fuel surcharge mechanism based on flight miles to better reflect rises in jet fuel prices and to provide shippers with a more transparent fee collection method.

The revised mechanism also represents a complete change of the present model for air cargo surcharges, reports AirCargo World of Washington, DC.

Starting September 1, fuel surcharges will be incorporated into the shipping rates, making them commissionable. The US dollar will serve as the basis for the new mechanism and be converted to other currencies for billing. Existing exchange rates will be used to determine the new fuel surcharge levels should prices change.

New fuel surcharge changes will be implemented in increments of 10 cents instead of five cents.

"To increase stability and prevent changes due to short-term peaks, a monthly moving average will be used," said Michael Wisbrun executive vice president for Air France-KLM Cargo.