BA hikes fuel surcharge on long-haul flights |
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Fri, 09 Sep 2005 16:05
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LONDON: Long-haul tickets on British Airways will now cost more as the airline is increasing its fuel surcharge -- fifth time in a year-- to 30 pounds per flight from 24 pounds, taking effect next Monday.
The airline, Europe's third biggest, said it is forced to effect the increase in view of the oil price ruling at its record high of $70 per barrel, especially after Hurricane Katrina hit the U.S. coasts. It had introduced a fuel levy of 2.50 pound in May 2004, raising it in August and October last year and in March and June this year.
Virgin Atlantic Airways has already raised fuel surcharge on tickets sold in Britain to 30 pounds, while several other major airlines are planning to review and increase the rates. Lufthansa's air cargo division hiked the surcharge to 0.50 euros per kilo from 0.45 euros, while SAS is poised to rise ticket prices rather than increase surcharge.
British Airways, however, left the surcharge on short-haul European flights untouched. The airline has stiff competition in this sector from budget airlines like Ryanair and easyJet. The company said it is maintaining its earlier guidance for annual revenues to come in 5.5 to 6.5 per cent higher this year.
British Airways' commercial director Martin George said the company's fuel bill of around 1.6 billion pounds is its second largest cost after employee costs. "This latest fuel surcharge rise is very regrettable but we have little choice but to pass on some of our extra costs on to our customers," he said.
George said the cost of fuelling a BA plane had gone up 400 per cent since December 2000.
The airline clarified that surcharges made it "easier" for its computer system and that the charges were clearly spelt out on Internet bookings.
Although the oil price had hit $70 a barrel after the hurricane, it had fallen subsequently. OECD countries are releasing two million barrels a day from their stockpiles for the next 30 days to ease the pressure on supplies to U.S. consumers.
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