BMI will no longer include fuel surcharges in fares for regional services from Wednesday.


The airline will axe the surcharges on its regional jets flying from Aberdeen, Edinburgh, Glasgow, East Midlands, Leeds Bradford, Manchester and Norwich from December 17.


BMI’s move follows the dramatic decline in the oil price, which has fallen from a high of $147 a barrel in July to $47 last week. However, it is unclear what impact the removal will have on fares as surcharges must be included in all prices displayed to customers.


Airlines began adding surcharges to fares in 2004 when oil cost $37 a barrel. At the time, the surcharge was generally added to a price after its selection by a customer. But the UK Office of Fair Trading ordered surcharges be incorporated in prices from May 2007 and the European Commission is poised to follow suit next May.


Major long-haul carriers continue to raise and lower fares by raising and lowering surcharges as this is the easiest way to alter pricing across a range of markets and technical systems.