Royal Caribbean Reverses Course on Fuel Surcharges

Looks like the cruise lines have blinked in the showdown over fuel surcharges.

Royal Caribbean has announced that it has reached a settlement with the Florida Attorney General's office, which is investigating the industry's recent use of fuel surcharges, and the company will refund more than $20 million to passengers.

In a move expected to be followed by other lines, Royal Caribbean and its sister line Celebrity Cruises will offer refunds to passengers who were forced to pay a $5-a-day fuel surcharge for recent and upcoming voyages even though they had booked their trips before Nov. 16, 2007, the day the surcharge was announced.

In a statement, Royal Caribbean says passengers booked before Nov. 16 who paid the fuel surcharge and have taken their cruise will receive a refund through the form of payment used to purchase their sailing. Passengers booked before Nov. 16 who paid the fuel supplement and have not taken their cruise will receive their refund as an onboard credit during their sailing.