AACargo Fuel Charge Rises Again
October 18, 2004

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American Airlines Cargo division increased its fuel surcharge for the second time in as many weeks. Effective October 8, the surcharge went to $0.30/kg for most international shipments originating in the United States, and $0.12/lb for U.S. domestic shipments. On the 18th they announced that effective November 1 it will rise to $0.35/kg for most U.S.-origin international shipments and to $0.14/lb for U.S. domestic shipments.

The fuel index for American Airlines Cargo reached 150.29 for the week ending Oct. 8, exceeding the trigger point of 145.00 for the second consecutive week. The fuel index is based upon an average of the five U.S. jet-fuel spot markets. It was established in September 2002 as a method to monitor and respond to changes in jet-fuel costs.

Adjustments to the fuel surcharge occur when the index equals, exceeds, or falls below a specified fuel threshold for two consecutive weeks. The trigger point matrix has also been expanded in response to the continued increases in the various fuel spot markets. This information, as well as a full matrix of applicable fuel surcharges, is available at http://www.AACargo.com.

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