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27/06/05

Permalink 04:09:34 pm, Categories: Companies, 195 words  

BA raises surcharge

British Airways will begin on Monday to charge passengers an increased fuel surcharge, it was announced on Friday.

After BA’s announcement, Virgin Atlantic said that they, too, will raise their fuel surcharge.

BA called the increase, its fourth since it began adding a fuel surcharge to passenger tickets in May of last year, “unavoidable.” Previous increases have not seemed to slow ticket sales.

The new surcharges include a 50 percent rise on tickets originating in the UK, up from £16 to £24 per flight leg, or by £48 for return trips, and a rise from £6 to £8 on shorter flights in Europe.

Virgin Atlantic’s increases will also go up to £24 per flight leg.

The director general of the International Air Transport Association has said in the past that rising oil prices were making airlines worldwide unprofitable and that the industry will see losses of $6 billion this year, the fifth year in a row of losses.

BA said that its fuel bill would go up by approximately £450 million this year, to £1.6 billion, 16 percent of its total costs. Virgin Atlantic says that its fuel bill is 22 percent of its costs.

Other airlines are expected to raise their fuel surcharges soon.

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