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Apr 27, 2006
British Airways has
raised fuel surcharges on its long-haul flights, citing the unabated rise in
the prices of fuel. The long-haul fuel surcharge on tickets sold and issued in
the UK increased from £30 per sector to £35 per sector (£70 return trip), while
the short-haul fuel surcharge remains unchanged at £8 per sector (£16 a return
trip).
Martin George,
British Airways' commercial director, explains,,“Our fuel costs remain a real
burden. The price of oil has risen above $70 a barrel and experts anticipate it
staying at these levels for some time. Our annual fuel bill for 2005/2006 is
expected to be some £1.6 billion. We estimated previously that this would rise
by £400 million in 2006/2007 but at these prices, we would now expect this
year's fuel bill to be £600 million higher at £2.2 billion.”
George says the
latest fuel surcharge rise is very regrettable, but BA had little choice but to
pass some of its extra costs on to customers. “Fuel is our second largest cost
after employee costs. 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,” he added.
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