BA to double passenger surcharge after £115m profits announcement
British Airways today said it would more than double its fuel surcharge for long-haul passengers after seeing oil prices continue to soar.
From Wednesday, the charge for a single long-haul flight will rise from £2.50 (€3.75) to £6 (€9) with the surcharge for a return journey rising to £12 (€18).
The move, which follows a 45% rise in fuel prices in the last 12 months, was announced as BA said it had achieved pre-tax profits for the three months to June 30 of £115m (€172.6m), up from losses of £45m (€67.5m) a year earlier.
The first quarter performance - described as "reasonable'' by chief executive Rod Eddington - was at the top end of market expectations.
However, Mr Eddington said fuel and employee costs represented the biggest challenges facing the airline, which is currently involved in a pay dispute with baggage handlers and check-in staff. It is also braced for higher pension contributions of £133m (€169.7m) a year.
The surge in oil prices means BA faces a fuel bill of more than £1.1bn (€1.65bn) in the 2004/05 financial year – £225m (€338m) more than last year and £70m (€105m) higher than estimated in May.
By increasing the fuel surcharge for long-haul customers, the company estimates it can recoup £70m (€105m) of the extra fuel costs.
