British Airways passengers face another rise in fares after higher oil prices forced the airline to increase fuel surcharges for the second time in as many months, according to GulfNews.com.
The report said analysts have warned that all airline passengers could be affected with other carriers expected to follow suit and drive up ticket prices.
BA increased its surcharge — a levy imposed on fares to cover the rising cost of oil — after admitting its fuel bill was in excess of £7 million (NZD$14.6 million) a day.
Douglas McNeill, transport analyst at Charles Stanley Securities was quoted saying: “Other airlines will try to recoup the rising fuel cost, whether they call it a fuel surcharge or not.
“But past experience suggests they will struggle to offset all of the impact.”
From Tuesday, the surcharge on economy class flights lasting more than nine hours will rise by £24 to £176 for a return ticket; while the levy for sub nine hour long haul flights to destinations such as New York will increase £24 to £150.
Premium tickets will face even higher increases but the surcharge on short-haul flights will stay the same. BA said the spot price of jet fuel has risen 14% per cent since the last duty rise in mid-December, which was the result of substantial increases in oil prices.
BA’s fuel surcharge on flights shorter than nine hours is now just £3 less than it was in June 2008, when the price of Brent crude oil peaked at more than $140 a barrel.
The price this week (of Feb 9th) rose to $103, driven by unrest in Egypt, and concerns about the security of energy supplies in the Middle East.
Earlier this week, Qantas Airways, Australia’s biggest carrier, increased the fuel surcharge for international flights for the first time in more than three years. – Source: GulfNews.com
