Fuel Surcharge Increase effective 16 Dec

Old Dec 14, 10, 4:08 am
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Fuel Surcharge Increase effective 16 Dec

Spotted this on the RNS:

British Airways will increase its fuel surcharge on longhaul services from Thursday, December 16.

There will be no fuel surcharge increase to any British Airways' shorthaul services.

All longhaul tickets will increase by 10 per sector (20 return).

The move reflects the substantial recent increase in the price of oil.

The change will mean:
For World Traveller flights over nine hours an increase of 10 per sector to 76. On flights of less than nine hours an increase of 10 per sector to 63.
For World Traveller Plus flights over nine hours an increase of 10 per sector to 94.50. On flights of less than nine hours an increase of 10 per sector to 73.
For First and Club World flights over nine hours an increase of 10 per sector to 108. On flights of less than nine hours an increase of 10 to 88.
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Old Dec 14, 10, 4:35 am
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so if were almost bout to book a flight, should we book it now...or will it make no diff. now somehow..ie. they'd apply it retro-actively?
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Old Dec 14, 10, 4:36 am
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From past experience, if you've booked already, BA don't apply the higher surcharge retrospectively - so book before Thursday if you want to save the cash.
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Old Dec 14, 10, 4:47 am
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Can anyone help me work out the actual cost spent by BA on fuel for a particular flight? I have had rather enough of this, and if the total of all the BA fuel surcharges comes to more than the fuel, I've a good mind to take BA to court.

Particularly in mind (because I am booked on it) is LHR-SEA...

Thanks
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Old Dec 14, 10, 5:06 am
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Did the fuel "surcharge" ever reduce significantly as the fuel cost fell from its high of over $150?
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Old Dec 14, 10, 5:19 am
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Originally Posted by Land-of-Miles View Post
Did the fuel "surcharge" ever reduce significantly as the fuel cost fell from its high of over $150?
And there is the rub. How can it possibly go higher now at circa $90 PB than when oil peaked at $140 in summer 2008. Like all oil based products, the price of aviation fuel is linked to the base oil price.

I don't have the historic fuel surcharge levels to hand...but I would bet the recent rise takes it above the level of summer 08.

However, to defend all airlines a little on this, the exchange rate is of course a factor and back in summer 08 1 bought almost $2.
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Old Dec 14, 10, 5:20 am
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My rough calculations are as follows feel free to point out any errors in the methodology.

The maximum fuel capacity of a 744ER is 241,000 litres according to Wikipedia.

The last published price via IATA of a barrel of Jet A1 is $98.9 so lets say $100 to round up.

There are approximately 159 litres per barrel of oil or in this case Jet A1.

So the maximum fill capacity of a 744 ER would be 1516 barrels at $100 each or $151, 600.

Assuming 416 passengers in a 3 class configuration gives a total cost of fuel per passenger of $364.42.

So the total surcharge would have to hit 230 before it could no longer be justified to pay for fuel.
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Old Dec 14, 10, 5:46 am
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Originally Posted by Land-of-Miles View Post
My rough calculations are as follows feel free to point out any errors in the methodology.

The maximum fuel capacity of a 744ER is 241,000 litres according to Wikipedia.

The last published price via IATA of a barrel of Jet A1 is $98.9 so lets say $100 to round up.

There are approximately 159 litres per barrel of oil or in this case Jet A1.

So the maximum fill capacity of a 744 ER would be 1516 barrels at $100 each or $151, 600.

Assuming 416 passengers in a 3 class configuration gives a total cost of fuel per passenger of $364.42.

So the total surcharge would have to hit 230 before it could no longer be justified to pay for fuel.

Thanks for this - seeing as that would almost get to australia it is not too far off the actual fuel surcharge of 2 x 9+ hour flights ie 76 x 2 = 152.

The calculations look good, but do you know how to work out fuel required for anything less than the maximum flying time? I seem to remember someone knowing a calculation...
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Old Dec 14, 10, 5:52 am
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But it is described as a surcharge, which suggests to me that a certain cost of fuel is meant to be included in the base ticket price, but because the cost of fuel has gone up, an additional charge is raised to cover that increase, not the whole fuel bill.

Also, don't forget that they levy a fuel surcharge on cargo too.

But really it's just part of the cost of a ticket and how they break it down is up to them. But on award tickets, I think it is mean to charge anything other than actual taxes.
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Old Dec 14, 10, 6:35 am
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Originally Posted by jlsw7 View Post
....But on award tickets, I think it is mean to charge anything other than actual taxes.
Sigh Am sure many on here can remember when a BA redemption tix was totally, totally free - no surcharges, taxes etc

I agree, a redemption should be free of all airline charges, but would grudgingly pay the taxes. However, if BA did take the fuel surcharge out of redemption my fear is the miles required for each redemption would go though the roof
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Old Dec 14, 10, 7:08 am
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Originally Posted by BOH View Post
However, if BA did take the fuel surcharge out of redemption my fear is the miles required for each redemption would go though the roof
AA manages not to charge anything other than the taxes on award flights on its own aircraft and the redemptions levels are generally the same as or lower than BA.

But, I agree that the lost income would have to be made up somewhere. However, I would actually rather that that redemption levels went up and the charges were eliminated. At least that way it really would be possible to get something for nothing and that, for me, is what these loyalty schemes are all about.

Last edited by jlsw7; Dec 14, 10 at 7:13 am
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Old Dec 14, 10, 7:18 am
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Which other businesses are allowed to add costs like this? Why can't BA just price the ticket correctly and fluctuate according to all their costs? Tax remains separate of course, like VAT being itemised.
Prices of just about everything else one buys go up or down according to all the outside things factored in.
Sorry if this topic has been done to death before, but it's simply a way for BA to keep headline prices low. In this respect, they are no better than Ryanair with a headline attraction.
They should fix a new "level" now, with fuel subsidy at ZERO.
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Old Dec 14, 10, 7:30 am
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Originally Posted by mlb7171 View Post
but it's simply a way for BA to keep headline prices low
Except that, unlike Ryanair, BA's headline prices are always fully inclusive prices.
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Old Dec 14, 10, 7:36 am
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Originally Posted by Cluster One View Post
Except that, unlike Ryanair, BA's headline prices are always fully inclusive prices.
No, BA actually advertises more prices than Ryanair without taxes and surcharges.
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Old Dec 14, 10, 7:45 am
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Originally Posted by BOH View Post
And there is the rub. How can it possibly go higher now at circa $90 PB than when oil peaked at $140 in summer 2008. Like all oil based products, the price of aviation fuel is linked to the base oil price.
I think you might find this is due to forward buying, fixing fuel charges for a few years in advance.
Joejet
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