Fuel Surcharge Increase from 8th Feb.
Feb 4, 2011, 7:34 am
#1
Original Poster
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Fuel Surcharge Increase from 8th Feb.
Originally Posted by IAG shares
Fuel Surcharge Increase
RNS Number : 7253A
International Cons Airlines Group
04 February 2011
FUEL SURCHARGE INCREASE
British Airways will increase its fuel surcharge on longhaul services from Tuesday, February 8.
There will be no fuel surcharge increase to any British Airways' shorthaul services.
World Traveller and World Traveller Plus tickets will increase by £12 per sector (£24 return).
First and Club World tickets will increase by £17 per sector (£34 return).
The move reflects the continuing substantial increase in the price of oil and a 14 per cent rise in the spot price of jet fuel since our last fuel surcharge increase in December 2010.
The change will mean:
· For World Traveller flights over nine hours an increase from £76 a sector to £88. On flights of less than nine hours an increase from £63 a sector to £75.
· For World Traveller Plus flights over nine hours an increase from £94.50 a sector to £106.50. On flights of less than nine hours an increase from £73 per sector to £85.
· For First and Club World flights over nine hours an increase from £108 per sector to £125. On flights of less than nine hours an increase from £88 per sector to £105.
RNS Number : 7253A
International Cons Airlines Group
04 February 2011
FUEL SURCHARGE INCREASE
British Airways will increase its fuel surcharge on longhaul services from Tuesday, February 8.
There will be no fuel surcharge increase to any British Airways' shorthaul services.
World Traveller and World Traveller Plus tickets will increase by £12 per sector (£24 return).
First and Club World tickets will increase by £17 per sector (£34 return).
The move reflects the continuing substantial increase in the price of oil and a 14 per cent rise in the spot price of jet fuel since our last fuel surcharge increase in December 2010.
The change will mean:
· For World Traveller flights over nine hours an increase from £76 a sector to £88. On flights of less than nine hours an increase from £63 a sector to £75.
· For World Traveller Plus flights over nine hours an increase from £94.50 a sector to £106.50. On flights of less than nine hours an increase from £73 per sector to £85.
· For First and Club World flights over nine hours an increase from £108 per sector to £125. On flights of less than nine hours an increase from £88 per sector to £105.
Taking advantage of the unrest in Egypt and fuel price spike it seems.
Feb 4, 2011, 8:48 am
#8
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Although on the upside, if they were outlawrd I bet we would see a big increase in the number of redemption miles required. So there is an upside - 100k miles and £450 charges and taxes or so for a CW seat to the US is still a resonable deal I suppose......
Feb 4, 2011, 8:51 am
#10
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Feb 4, 2011, 8:58 am
#12
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It is a truly great con. Means airlines can set an effective "base" fare of the surcharge...and discounts for corporate rates are not off this initial surcharge but a smaller "fare" amount. Redemptions also pay the surcharge off course - quite brilliant really.
And the question is always if it is a true "surcharge", the base oil PB rate at which it applies from should be periodically reviewed and the base fare adjusted accordingly. So over the last 12 months the oil PB has been $75-$80, that rate factored into the base fare and a surcharge applied from this new base rate. But they don't - so I say it is a con not a surcharge
Feb 4, 2011, 8:58 am
#13
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Well, how well does your crystal ball work? 
It's not the same as filling up a car and paying a few pence/cents extra every week for 15 gallons - it's filling up a thirsty fleet of aircraft every day with thousands of gallons - and trying to predict the price in six months, a year, two years...
Lock in a contract for a price per gallon that's higher than it is currently and you still have to pay that price even if the actual price has dropped or stayed static. Not something I'd want to have to make the decision on!
It's not the same as filling up a car and paying a few pence/cents extra every week for 15 gallons - it's filling up a thirsty fleet of aircraft every day with thousands of gallons - and trying to predict the price in six months, a year, two years...
Lock in a contract for a price per gallon that's higher than it is currently and you still have to pay that price even if the actual price has dropped or stayed static. Not something I'd want to have to make the decision on!
Feb 4, 2011, 9:02 am
#14
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I have no objection to be honest as I do not make straight redemptions and I do not expect there to be any real impact on WT+ sale fares that I might MFU from other than fare increases that would happen anyway.
Feb 4, 2011, 9:05 am
#15
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By now one can easily argue that at least 50% of the current surcharge should be part of the ticket price. Unless BA seriously expects a time that the surcharge will be 0.00 again it is fraud.