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BA fuel surcharges rise further | BA fuel surcharges rise further |
(20 minutes later) | |
British Airways has said it will increase its fuel surcharges on all tickets issued from Tuesday, 3 June as it looks to offset rising oil prices. | British Airways has said it will increase its fuel surcharges on all tickets issued from Tuesday, 3 June as it looks to offset rising oil prices. |
The surcharge for short-haul flights will rise by £3 per flight to £16 per flight, or £32 for a return ticket. | The surcharge for short-haul flights will rise by £3 per flight to £16 per flight, or £32 for a return ticket. |
Long-haul flights of less than nine hours will increase by £15 per flight to £78 per flight. | Long-haul flights of less than nine hours will increase by £15 per flight to £78 per flight. |
The surcharge for long-haul flights of more than nine hours will rise by £30 per flight to £109 per flight. | The surcharge for long-haul flights of more than nine hours will rise by £30 per flight to £109 per flight. |
BA added that it would also increase its fuel surcharges by similar levels in markets outside the UK. | BA added that it would also increase its fuel surcharges by similar levels in markets outside the UK. |
Earlier this month, BA reported a 45% rise in profits to £883m for the year to 31 March. | Earlier this month, BA reported a 45% rise in profits to £883m for the year to 31 March. |
However, at the same time, the airline warned that the current financial year would be tough because of the soaring cost of jet fuel. | However, at the same time, the airline warned that the current financial year would be tough because of the soaring cost of jet fuel. |
It said at the time that if oil remained at its then market price of $120 a barrel, BA's total fuel costs would rise by about £1bn in the current financial year. | It said at the time that if oil remained at its then market price of $120 a barrel, BA's total fuel costs would rise by about £1bn in the current financial year. |
The price of oil hit a record high of more than $135 a barrel last week and is currently trading around the $130-a-barrel mark. | The price of oil hit a record high of more than $135 a barrel last week and is currently trading around the $130-a-barrel mark. |
Revenue measures | Revenue measures |
Separately, Spanish airline Iberia said that it was dropping its bid for fellow airline Spanair. | |
The move came soon after Iberia's chairman said it was rethinking its stance on the offer because of difficulties facing the sector. | |
And the International Air Transport Association (IATA) warned that the airline industry faced a "grim" outlook, saying that passenger numbers would be dented by soaring fuel costs and economic turmoil. | |
The number of airline passengers grew by 3% in April from 5.4% in the same month the previous year, it said. | The number of airline passengers grew by 3% in April from 5.4% in the same month the previous year, it said. |
And for the first four months of 2007 the year, growth was 5.6%, as against 6.7% the previous year. | And for the first four months of 2007 the year, growth was 5.6%, as against 6.7% the previous year. |
Besides fuel surcharges, airlines have begun taking measures to try and boost revenue. | Besides fuel surcharges, airlines have begun taking measures to try and boost revenue. |
Last week, American Airlines said it would become the first major US carrier to charge passengers to check in a first bag. | Last week, American Airlines said it would become the first major US carrier to charge passengers to check in a first bag. |
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