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BA To Increase Fuel Charges Yet Again

Mon, 11 Jun 2007

British Airways today announced its fuel surchages would be raised for the second time in the past five weeks and the eighth time since their introduction three years ago.

As of next Wednesday the controversial charge, for a return long haul flight that is over nine hours, will increase from £76 to £86. A return long-haul flight that takes less than nine hours will also increase from £66 to £76.

Only last month BA raised these last two charges from £60 and £70, making a £16 increase in the last five weeks.

The rise in prices were blamed on surging oil costs, but rival carrier Ryanair immediately accused the company of ‘ripping-off’ its customers.

The budget carrier stated that the charge per one-way flight has risen from £2.50 to £38 in three years, while the price of oil has only doubled in that time.

The fuel surcharge for short-haul flights, where BA faces competition from Ryanair and easyJet, will remain the same at £16 return.

So far there has only been a single reduction in the surcharge, which was a £5 cut off a one-way long-haul charge to £30 back in January.

Robert Boyle, BA’s commercial director, commented: "The cost of fuel has again risen significantly in recent weeks. Unfortunately, we have little choice but to pass on some of this extra cost to our customers."

"Fuel continues to be our second-largest cost and we expect our fuel bill this year to be more than £2 billion."

"The price of oil continues to be extremely volatile. Therefore, we believe the fuel surcharge continues to be the most transparent way for our customers to understand what they are paying and allows us to adjust the direct cost to our customers appropriately, whether that is increasing or reducing the fuel surcharge as we did on some of our long haul flights in January," added Boyle.

BA is currently under investigation by the Office of Fair Trading and US authorities over alleged collusion in fixing the prices of fuel surchages.
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