United Kingdom
United States
Asia Pacific
BA hikes fuel surcharge
British Airways is putting up the fuel surcharge on its longhaul flights from £30 per sector to £35 on Friday.
It says the rise, which applies to tickets sold and issued in the UK, reflects the higher price of fuel, which has now gone above $70 a barrel.
“This latest fuel surcharge rise is very regrettable but we have little choice to pass some of our extra costs on to our customers. Fuel is our second largest cost after employee costs,” said commercial diector Martin George.
“We believe that it is better to be transparent with our customers by showing the level of fuel surcharge they are paying rather than hide the costs by raising fares behind the scenes like some other airlines choose to do. This approach would enable us to reduce the surcharge should fuel prices fall over time.”
The shorthaul fuel surcharge will remain unchanged at £8 per sector.
BA said its annual fuel bill for 2005/06 is expected to be some £1.6 billion and was originally estimated to rise by £400 million in 2006/07.
“At these prices, we would now expect this year’s fuel bill to be £600 million higher at £2.2 billion,” said George.
The additional fuel charge does not apply to tickets already paid for and issued.
Fuel surcharges have risen dramatically since they were first introduced by BA in May 2004. At that time, the airline only charged £2.50 per sector on longhaul and shorthaul flights.
They gradually crept up and reached £30 per sector on longhaul in September 2005. It now costs almost four times more to fill an aircraft than it did in December 2001.
Ryanair chief executive Michael O’Leary condemned the rise and reportedly said: “At £35 per sector. BA’s surcharge is greater than Ryanair’s average fare (£28 per sector). Isn’t it time that BA stopped gouging passengers and started reducing other costs?”
Report by Bev Fearis
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