British Airways has risked further wrath from customers after increasing fuel
surcharges for the second time in a month.
The new surcharge, which is being blamed on the rising cost of oil, will
affect all tickets and equal £218 for a return flight of over nine hours, up
from the previous charge of £158.
This is the thirteenth time BA has increased its fuel surcharges since it
introduced them in 2004. It has decreased the surcharge only once, by £5 per
sector, in January 2007.
On long-haul return flights of less than nine hours the surcharge is £156, up
from £126, and on short-haul flights the cost is £32 return, up from £26. The
new costs will apply to any tickets issued from Tuesday, June 3.
On some routes, such as to New York in the offpeak travel season, passengers
may find the surcharge is more than the basic fare and other highly
competitive long-haul routes.
BA has blamed the move on continuing high oil prices. A spokeswoman told Times
Online: "Oil is now at over $120 a barrel, which compared even just
to last year, when it was around $80, is a massive increase."
The new charges apply to the UK market only, but BA says it will make similar
increases to the fuel surcharges it applies to tickets issued abroad.
British Airways said earlier this month that it would ground part of its fleet
from October to cut costs and stem potential losses caused by the crippling
price of fuel. Analysts have given warning that the airline may only break
even or worse for the next two years.
The aircraft that are grounded are likely to be BA's oldest, least
fuel-efficient aircraft.
BA is hoping tough times will help it take the lead in industry consolidation.
Willie Walsh, the chief executive, met with his opposite number at
Continental Airlines in Houston last week and has resumed negotiations with
American Airlines with the aim of creating a transatlantic alliance.
The airline industry around the world is struggling to come to terms with
soaring oil prices, with some of the smaller players such as Silverjet, a
business class only service, on the brink of financial collapse.
The fuel bill for flying from London to New York has quadrupled in the past
eight years and the impact on airlines has already been seen in the US,
where American Airlines is cutting jobs, retiring old planes and charging
passengers to check in their bags. In Europe, Air France-KLM has warned that
its profits would fall by a third under the weight of rising fuel costs.
On Wednesday Sir Richard Branson’s Virgin Atlantic announced fuel surcharge
rises, although the carrier said that those sitting at the front of the
aircraft would face higher charges than those in economy-class seats at the
back.
Surely what BA is doing is a con ?
Can any business play this game ?
Could you imagine a petrol station advertising petrol at 90p a litre, then demanding 30p a litre "fuel surcharge" when you pay ?
jasper, chelmsford,
I wouldn't worry about the Nigerian Boycott of British Airways to empty their seats and bring their passenger numbers down. Their doing a pretty good job by pricing most people out.
I would say this is a good thing for the environment though. Holiday at home me thinks for the next few years.
William, Belfast,
How can BA justify this latest increase when they have their oil needs hedged at $85 a barrel?
Martin, London,
Shouldn't the new rules on unfair commercial practices prevent companies quoting one price and charging another? Are airlines somehow exempted? Will anyone try a test case?
Steve, T Wells,
Easy cheap foreign travel is over. Just like the americans starting to dump the big fuel guzzaling SUV.
The credit crisis, wealth destruction and higher costs for the basics has brought a change in behaviour faster that Green politics. Rethink manufacturing abroad because of logistical costs.
Goldfinger, Gloucester, UK
I don't fly BA anyway, but isn't it time that all this "surcharge" rubbish is banned? Airlines should show how much a ticket REALLY costs. A ticket I booked a few weeks ago had a "surcharge" of %3 for paying by credit card and 2% for paying by debit card!
M. R., Stockport,
BA can't say that they've increased fares because they haven't.
Their anual fuel bill will top over £3bn
This will be their singal highest cost. It seems that all we do in the UK is to bad mouth our own companies and which I have to say is very sad.
Why not support them for once!!
baz, Herts, uk
Sorry, but you should be hedging against oil price rises and exchange rate flucutations. Who is getting it so badly wrong at this company?
My advice, fly Emirates.
Paul, Swansea,
To Ian from Madison: BA will be using futures to lock in prices in advance. This enables them to predict how much they're going to have to pay for oil, but if prices go up then what they pay still goes up eventually! And no, Edna, anyone can do this, not just the bigger airlines.
Alan Stacey, London WC2, England
The fuel surcharge was meant to be temporary. A 3-year "surcharge" should now just be included as part of the main fare. ALL the airlines need to do this, not advertise low fares and then double the actual cost with taxes and surcharges.
Liz, Bir,
Virgin and BA use fuel surcharges rather than simply increasing the fares because a huge percentage of their custom is business travel where organisations have pre-negotiated fixed fares. Just increasing the base fare would pass all of the fuel price increase to non-business customers.
Gary, London, UK
There are many people that seem to think it is their God given right to fly anywhere in the wold for 200 pounds..what a joke, almost as funny as deregulation working. Dozens of insolvencies, airlines that loose money year after year, customer dissatisfaction at all time highs... bring back the 80s.
Richard, Europa, Europa
My quoting the need to buy their fuel at today's spot prices BA is telling us that they do NOT hedge their fuel costs going fwd AT ALL. I find that difficult to believe of a well managed airline. Most companies would surely have hedged fwd their fuel costs by 12 months.
Ian, Madison, USA
what's the point of having fuel surcharges? It's just part of the fare. I guess it's to disguise an increase in the fare, easier to say increase in fuel surcharge than say an increase in fares... ie blame fuel costs, they are turning into the deceptive ryannair. BA needs to keep it simple!
Anthony, London,
Does that mean they will employ someone competent to put the bags on the plane?
steve, london,
People seem to find it hard to accept that the cost of every kind of fuel has increased enormously. BA is in business to make money, they are not a benevolent society and have no intention of losing millions which is easily done these days. The way people are still using cars is amazing.
Phil de Buquet, Newport,
I am baffled by this animosity to British Airways. I recently flew with BA (again) from LHR to Boston and back. The price was good. The flights were on time. The price was a good market price. I have been flying with BA (amongst many others) for around 55 years now. Try Delta if you want it BAD.
Harry Collier, Malmesbury, England
By their own statement, oil prices have risen from $80 to $120 - an increase of 50%. Why then have some prices increased by over 100%? Typical BA - hiding behind global events to hike up the price.
Martin, Manchester, United Kingdom
I understand that the airlines do not pay tax on their fuel.(unlike the motorist). This seems to me to be pure profiteering and any excuse to raise prices. I do not believe that the airlines are 'struggling' as much as they claim to be - they just want to increase their profit margins.
Maxine Bliss, Leigh, UK
I make it a condition of any contracts that overseas travel is not with British Airways.
Paul, Rushden, UK
Well each $5 a barrel oil goes up costs BA £80 Million a year, i am sure its the same for the others but BA is such a pblic airline, sorry to say the days of cheap travel are over
Peter, Aldershot, UK
Why can't they just be honest about it and say they have increased fares?
Richard, Bexhill, UK
This is dishonest. The cost of fuel should be built-in to the ticket cost.
denis, belfast, n.ireland
BA has 'hedged' a large percentage of its fuel for far less than U$120 a barrel.
Why doesn't it pass this saving on to its customers? It is only the larger airlines that have this clout with the oil companies.
Edna Burbridge, Engreve, France
Who actually flies with BA anymore?
"The World's Favourite Airline"? - yeah right!
Chris, London,
I have long refused to fly with British Airways. This move just puts back in time any thought I might have of returning.
BA is not worth the hassle of booking a flight.
Why can they not incorporate the cost of fuel into the ticket price,
and charge more for the ticket?
David Michael, London, UK
So what about the currency gains locked in by the airlines through the depreciating US dollar. I never hear this mentioned, just oil price rising - except that oil is in USD.
Daryl, London,