Saturday, April 30, 2011

British Airways adds £10 to fuel surcharge

If you are flying premium economy or economy with British Airways for a long haul flight to destinations like the United States, the Far East or the Caribbean, be ready to shoulder an additional £10 for fuel surcharges. This is the third increase in its price for the last four months.
Because of the announced increased, a passenger will have to pay an economy ticket £64 more coming back from New York compared to what he or she would have spent last December. The surcharges will sum up to around £85 for travels going under nine hours like those for Boston and New York. It can be as high as £98 for those travelling to far flung places.
Passengers who are taking the First Class or Business cabins should be ready to face a £20 increase bringing the surcharges to £125 for flights under nine hours and around £145 for longer travel time.
According to a British Airway representative, the fuel costs of the company are at its highest spening around £9 million per day. BA also cites the 17% fuel price incrase since their last fuel surcharge increase back in February 2011. The spending of the airliner on fuel represents a third of their total costs and greatly affects their operations.
Airlines protect themselves from the sky rocketing fuel prices by hedging or by spending for fuel a few months ahead of actual consumption. Around half of the fuel of British Airways have been hedged for the remaining months of 2011.