Another fuel surcharge increase on its way
#1
Moderator: British Airways Executive Club, Iberia Airlines, Airport Lounges and Environmentally Friendly Travel
Original Poster
Join Date: Jan 2003
Location: London, UK
Posts: 22,212
Another fuel surcharge increase on its way
According to the BBC , Virgin Atlantic have announced a £6 hike in fuel surcharges to £30 per sector, effective 7 September. Business analysts expect BA to follow suit.
#2
Join Date: Oct 2004
Location: near LHR and a bit further from LGW
Posts: 43
I know we've had this discussion on here...
Originally Posted by GregM
According to the BBC , Virgin Atlantic have announced a £6 hike in fuel surcharges to £30 per sector, effective 7 September. Business analysts expect BA to follow suit.
Am I missing something, or are we getting shafted here?
Or Both!
#3
Join Date: Jan 2003
Posts: 3,775
Am I missing something, or are we getting shafted here?
The airline industry has no choice but to pay the increase either. We have a choice - either hit you with a surcharge or refund your ticket and make you rebook at a higher fare - perhaps, in retrospect, we should offer you the option. The third option is to carry you at a loss, but as a business answerable to its investors, that is out of the question - particularly as the airline industry is unfairly being shafted by the EU regulations concerning delays over which it has no control (eg Weather, Air Traffic Control etc)!
#5
Join Date: Jan 2004
Location: AKL via LPL, LHR, MAN and origainally CFN
Programs: BD DC, BA EC, AAdvantage, Hhonors and now NZ Aipoints
Posts: 764
Originally Posted by bealine
Yesterday, the price of unleaded fuel hit £1.04 per gallon. You, the motorist, have no choices but to pay the increased oil price!
The airline industry has no choice but to pay the increase either. We have a choice - either hit you with a surcharge or refund your ticket and make you rebook at a higher fare - perhaps, in retrospect, we should offer you the option. The third option is to carry you at a loss, but as a business answerable to its investors, that is out of the question - particularly as the airline industry is unfairly being shafted by the EU regulations concerning delays over which it has no control (eg Weather, Air Traffic Control etc)!
The airline industry has no choice but to pay the increase either. We have a choice - either hit you with a surcharge or refund your ticket and make you rebook at a higher fare - perhaps, in retrospect, we should offer you the option. The third option is to carry you at a loss, but as a business answerable to its investors, that is out of the question - particularly as the airline industry is unfairly being shafted by the EU regulations concerning delays over which it has no control (eg Weather, Air Traffic Control etc)!
I have no bones with the surcharge, but airlines should factor it into the cost of a flight, if it means adding 7 instead of 6 to every flight to cover those of us who may travel on miles once in a while, then so be it, but that is the part of this carry on which shafts us, and it p1sses me off.
It has long been established that airlines treat the surcharges as a cash cow
P
#6
FlyerTalk Evangelist
Join Date: Dec 2004
Posts: 11,924
What's so difficult about hedging your fuel costs for the next year. You know roughly your requirements, month by month, you buy forward contracts, you know what your future fuel costs will be. Am I missing something?
I hedge against my foreign currency expenses for 2006 in the same way. I am buying certainly. Why can BA not do the same?
I hedge against my foreign currency expenses for 2006 in the same way. I am buying certainly. Why can BA not do the same?
#7
Join Date: Mar 2004
Location: London, UK
Posts: 5,105
Originally Posted by simon_n10
What's so difficult about hedging your fuel costs for the next year. You know roughly your requirements, month by month, you buy forward contracts, you know what your future fuel costs will be. Am I missing something?
I hedge against my foreign currency expenses for 2006 in the same way. I am buying certainly. Why can BA not do the same?
I hedge against my foreign currency expenses for 2006 in the same way. I am buying certainly. Why can BA not do the same?
http://media.corporate-ir.net/media_...tats_Aug05.pdf
#11
FlyerTalk Evangelist
Join Date: Feb 2004
Location: London
Programs: BA, VS, HH, IHG, MB, MR
Posts: 26,871
How often does BA reset its prices? Six monthly with the new timetable? In which case, there is no reason why a fuel surcharge should be in place for more than six months. I'm pretty sure Advertising Standards will also be looking into this very soon. Any surcharge now should, realistically, only reflect oil price rises in recent months, not over the last 3 years!
#12
Fontaine d'honneur du Flyertalk
Join Date: Jul 2001
Location: Morbihan, France
Programs: Reine des Muccis de Pucci; Foreign Elitist (according to others)
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Originally Posted by simon_n10
What's so difficult about hedging your fuel costs for the next year. You know roughly your requirements, month by month, you buy forward contracts, you know what your future fuel costs will be. Am I missing something?
I hedge against my foreign currency expenses for 2006 in the same way. I am buying certainly. Why can BA not do the same?
I hedge against my foreign currency expenses for 2006 in the same way. I am buying certainly. Why can BA not do the same?
Will it go down - I wish that I knew as I could be a very rich woman - but if it should - then - shouldn't the fuel surcharge go back down? Let's watch!
#14
Join Date: Dec 2004
Location: UK
Programs: Bonvoy Gold, AA Plat, Volare Premier, VS Silver, National Emerald Elite, Hertz President Circle
Posts: 2,526
Deciding to add it as a surcharge rather than as a base cost is deliberate to decrease their liabilities on miles. Any fool knows that. That they're hedged for the most part makes it even more so. What would they do if the price went against their hedge, would they add a "hedge charge"? Come on...
I've had enough of all this nonsense of charges and surcharges - for me a flatbad in a tin with M&S reheated food and a third rate bubbly is not worth 2 grand. I might start keeping all the points for the hotel stays in their hotel accounts, get free comfy nights in a heavenly beds. These are free.
Miles collection on BA - even with the twofer - is becoming less and less an attractive proposition for anyone who does not do J lounghaul every month (or who does not have an addiction to the game).
I've had enough of all this nonsense of charges and surcharges - for me a flatbad in a tin with M&S reheated food and a third rate bubbly is not worth 2 grand. I might start keeping all the points for the hotel stays in their hotel accounts, get free comfy nights in a heavenly beds. These are free.
Miles collection on BA - even with the twofer - is becoming less and less an attractive proposition for anyone who does not do J lounghaul every month (or who does not have an addiction to the game).