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Federal Air – Fuel Levy Increase

From March 2018, the price of Aviation fuel (JETA1) has increased by 38% as a result of a combination of the increase in International Oil prices and the weakening of the Rand against the US Dollar. During this period, Federal Airlines have managed to absorb the higher fuel prices however due to the most recent wave of fuel increases, they cannot continue to do so.

Federal Airlines have therefore had no other option but to increase the rates by adding a fuel levy for the 2018 and 2019 periods respectively with effect from 1 October 2018.

During the same period, foreign currencies, in particular, the USD has continued to strengthen against the ZAR. Federal Airlines Shuttle ticket price is effectively 17% less expensive in USD terms due to the depreciation of the South African Rand since January 2018.

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