Passenger fuel surcharge update

With ongoing changes to the global fuel markets, TT-Line has today reaffirmed its temporary 15% passenger fuel levy will be removed as soon as possible.

When the surcharge was introduced three months ago, the company had already absorbed $1.6 million in additional fuel costs since the beginning of the Iran conflict. In April and May, the increase in fuel costs associated with passenger travel was $4.1 million over the forecast level. $2.4 million of this was recovered through the 15% passenger fuel surcharge.

TT-Line Chair Ken Kanofski said the surcharge was under constant review.

“We are looking very closely at the passenger fuel surcharge because, as we have always said, it is a temporary measure aimed at recovering the additional cost of fuel”, Mr Kanofski said.

“It’s a complex issue for us, as people pay for their tickets at a different time than they sail.”

The decision to introduce the fuel surcharge was not made lightly.

“We had to balance our financial exposure to increasing fuel costs with the impact a surcharge could have on demand and ticket sales,” said Mr Kanofski.

Retail vehicle fuel prices reducing will increase confidence for those Australians planning a driving holiday.

“The fuel prices in recent months made some visitors reconsider their driving holiday, and with prices at the bowser returning to normal we hope to see a strong summer ahead,” Mr Kanofski said.

“We will continue assessing all factors relating to fuel and will remove the passenger fuel surcharge as soon as we are able.”

TT-Line has always had a separate fuel surcharge component incorporated into its freight pricing, in line with industry standards. This will remain unchanged.