BA introducing progressive fuel surcharges
Jun 18, 2008, 4:08 pm
#1
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Location: London, UK
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BA introducing progressive fuel surcharges
British Airways will apply changes to fuel surcharges for all ticket sales from Thursday 19 June 2008. The changes mean that different surcharges will apply depending on which class the passenger travels on. Fuel surcharges are included in the GDS fare quotation as part of the amount shown under code 'YQ'
I'd be interested to learn how this will effect MFUs to existing tickets
Code:
New Fuel Surcharges for sales in the UK
All charges shown are per sector.
Return charge is double eg GBP 16.00 (GBP 32.00 for a return)
Shorthaul & Domestic
Economy: GBP 16.00
Club Europe: GBP 20.00
Longhaul under 9 hours
Economy: GBP 78.00
WT Plus: GBP 88.00
Club World & First: GBP 98.00
Longhaul 9 hours and over
Economy: GBP 109.00 (except to Australia which is GBP 129.50)
WT Plus: GBP 121.00 (except to Australia which is GBP 141.50)
Club World & First: GBP 133.99 (except to Australia which is GBP 153.50)
New Fuel Surcharges for sales in most other countries
All charges shown are per sector.
Return charge is double eg USD31.00 (USD62.00 for a return)
Shorthaul & Domestic
Economy: USD 31.00 EUR 24.00
Club Europe: USD 39.00 EUR 29.00
Longhaul under 9 hours
Economy: USD1 47.00 EUR 99.50
WT Plus: USD 167.00 EUR 112.00
Club World & First: USD 187.00 EUR 125.00
Longhaul 9 hours and over
Economy: USD 209.00 EUR 140.50
WT Plus: USD 233.00 EUR 156.00
Club World & First: USD 257.00 EUR 171.00
Insurance & Security surcharge
Add the following to the Fuel Surcharge to get the full YQ level.
UK: GBP 2.50
Europe: EUR 3.00
USA: USD 4.00
Most other countries: USD 4.00
Longhaul routes under 9 hours
MAN - JFK
SYD - BKK/SIN
LON and
AUH/BAH/CAI/DOH/DXB/KWI/MCT/TLV (Middle East)
ABV/ACC/EBB/LAD/LOS/NBO (Africa)
ATL/BDA/BOS/BWI/DTW/EWR/IAD/JFK/OED/PHL/YUL/YYZ (N America & Bermuda)
Jun 18, 2008, 4:15 pm
#2
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Location: London, UK
Posts: 5,120
To be honest I've lost track of these charges. In what sense is this an introduction of "progressive charge"? I seem to recall that there were different levels of charge already for Y versus J/F, and >9hrs versus <9hrs. Is the new element then the higher charge for WT+?
Jun 18, 2008, 4:34 pm
#3
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The sliding scale for different classes of travel is a new introduction
Code:
Fuel surcharge applied per sector:
Shorthaul & Domestic
Economy: GBP 16.00 (no change)
Club Europe: GBP 20.00 (increases by GBP 4.00)
Longhaul under 9 hours
Economy: GBP 78.00 (no change)
WT Plus: GBP 88.00 (increases by GBP 10.00)
Club World & First: GBP 98.00 (increases by GBP 20.00)
Longhaul 9 hours and over (excluding sectors to Australia)
Economy: GBP 109.00 (no change)
WT Plus: GBP 121.00 (increases by GBP 12.00)
Club World & First: GBP 133.99 (increases by GBP 24.99)
Longhaul sectors to Australia
Economy: GBP 129.50 (increases by GBP 20.50)
WT Plus: GBP 141.50 (increases by GBP 32.50)
Club World & First: GBP 153.50 (increases by GBP 44.50)
Jun 18, 2008, 4:37 pm
#4
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To be honest I've lost track of these charges. In what sense is this an introduction of "progressive charge"? I seem to recall that there were different levels of charge already for Y versus J/F, and >9hrs versus <9hrs. Is the new element then the higher charge for WT+?
Agreed though, this is all confusing! What was the fuel surcharge up to now?
Jun 18, 2008, 4:44 pm
#5
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On 2 June this year the surcharge in CW/F for a flight > 9 hours was 79 per sector.
On 3 June it went up to 109: http://news.bbc.co.uk/1/hi/business/7425631.stm
On 18 June it will go up to 133.99 (ie 134).
How is it, that on 2 June, BA did not foresee the need to raise it to the level that it will go to on 18 June? That's a 55 increase - almost 70% - in 16 days. How can that be justified?
On 3 June it went up to 109: http://news.bbc.co.uk/1/hi/business/7425631.stm
On 18 June it will go up to 133.99 (ie 134).
How is it, that on 2 June, BA did not foresee the need to raise it to the level that it will go to on 18 June? That's a 55 increase - almost 70% - in 16 days. How can that be justified?
Jun 18, 2008, 4:53 pm
#6
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Progressive fuel surcharges
A statement from BA, which I received from our corporate travel agent:
" BRITISH AIRWAYS FUEL SURCHARGE CHANGES
Following a further review in response to continuing rising oil prices, British Airways will restructure its fuel surcharge for tickets sold in its First, Club World, World Traveller Plus and Club Europe cabins.
With effect from Thursday June 19, 2008 the fuel surcharge will differ by cabin to reflect some of the additional costs per passenger associated with carrying customers in premium cabins.
The current fuel surcharge level will remain in place for all long haul economy World Traveller and short haul economy Euro Traveller tickets.
Willie Walsh, British Airways chief executive, said: Recent unprecedented oil price rises are putting pressure on the whole aviation industry. For British Airways, fuel is expected to overtake employee costs this year to become our largest cost. We expect our fuel bill for the year to rise from just over 2 billion to more than 3 billion. Therefore we believe it is now appropriate to spread some of this significant additional cost among those passengers travelling in cabins with fewer seats, using more space and benefiting from larger baggage allowances, as we burn more fuel per passenger to fly them.
" BRITISH AIRWAYS FUEL SURCHARGE CHANGES
Following a further review in response to continuing rising oil prices, British Airways will restructure its fuel surcharge for tickets sold in its First, Club World, World Traveller Plus and Club Europe cabins.
With effect from Thursday June 19, 2008 the fuel surcharge will differ by cabin to reflect some of the additional costs per passenger associated with carrying customers in premium cabins.
The current fuel surcharge level will remain in place for all long haul economy World Traveller and short haul economy Euro Traveller tickets.
Willie Walsh, British Airways chief executive, said: Recent unprecedented oil price rises are putting pressure on the whole aviation industry. For British Airways, fuel is expected to overtake employee costs this year to become our largest cost. We expect our fuel bill for the year to rise from just over 2 billion to more than 3 billion. Therefore we believe it is now appropriate to spread some of this significant additional cost among those passengers travelling in cabins with fewer seats, using more space and benefiting from larger baggage allowances, as we burn more fuel per passenger to fly them.
Jun 18, 2008, 5:23 pm
#7
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Therefore we believe it is now appropriate to spread some of this significant additional cost among those passengers travelling in cabins with fewer seats, using more space and benefiting from larger baggage allowances, as we burn more fuel per passenger to fly them.
If you follow this line of argument I would have expected a small reduction in the fuel surcharge for Y passengers. In reality it's just another hike in fuel surcharges but targetted where they think there's less sensitivity to the increase.
Jun 18, 2008, 5:31 pm
#8
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I would like to hear WW on the subject!
Jun 18, 2008, 5:39 pm
#9
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WW's comments seem a little strange as I thought, to date, airlines largest expense was always fuel. If they (BA) put as much time and effort into staffing as they do in calculating weight / wind speed / weather / flight pattern (primarily to maximise fuel economy) then we would only be in a better situation now.
I can understand the increased billing of premium passengers but, really, how many of us actually take 3 50lb bags when we travel? Yes the price of crude has increased exponentially but maybe a better system would have been to charge for the third bag?
WW's reasoning for 'cabins with fewer seats, using more space' also seems unfounded as that has been paid for in the base price. It costs the same amount in fuel, per passenger to transport Mr FIRST as it does Mr Economy.
Oh WW, when will it all end?
I can understand the increased billing of premium passengers but, really, how many of us actually take 3 50lb bags when we travel? Yes the price of crude has increased exponentially but maybe a better system would have been to charge for the third bag?
WW's reasoning for 'cabins with fewer seats, using more space' also seems unfounded as that has been paid for in the base price. It costs the same amount in fuel, per passenger to transport Mr FIRST as it does Mr Economy.
Oh WW, when will it all end?
Jun 18, 2008, 8:33 pm
#10
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To me the progressive surcharge argument seems a bit silly. I thought that passengers in premium cabin paid extra for the extra services through the fare difference....I guess using WW logic, I was wrong.
Jun 18, 2008, 9:49 pm
#11
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Therefore we believe it is now appropriate to spread some of this significant additional cost among those passengers travelling in cabins with fewer seats, using more space and benefiting from larger baggage allowances, as we burn more fuel per passenger to fly them.
Jun 19, 2008, 2:02 am
#12
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And those of us who travel with an infant (weighing less than your hand luggage) will have to pay the full fuel surcharge for said infant ...
Jun 19, 2008, 3:09 am
#13
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Is anyone really surprised by this? I don't like it either but I'm not surprised.
I agree that the biggest con here is for miles redemptions. It recently cost me more in surcharges to book a transatlantic flight on miles than the whole ticket cost me 6 years ago.
I agree that the biggest con here is for miles redemptions. It recently cost me more in surcharges to book a transatlantic flight on miles than the whole ticket cost me 6 years ago.
Jun 19, 2008, 3:46 am
#15
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I'm quite happy to pay these fuel surcharges. There's 1-2 billion people in China, India and elsewhere that want a piece of the Western World action, to enjoy a middle class life with a car and aircon and so on. Given limited energy (and other) resources, the price has to rise sharply.
There's an argument that we should recognise this fuel price shock as a big shift in relative prices, rather than a more generalised lift in inflationary pressure. By having these surcharges, rather than having the higher cost of fuel embedded (hidden) in the prices of other products where fuel is an input (such as airfares), as a community we may be less inclined to push for higher wages etc which really would then lead to an inflation problem.
It does mean a decline in living standards (in FT terms, we have to pay more for award flights!), but that's the price we pay if we let the developing world have a bigger share of the world's resources.
JS
There's an argument that we should recognise this fuel price shock as a big shift in relative prices, rather than a more generalised lift in inflationary pressure. By having these surcharges, rather than having the higher cost of fuel embedded (hidden) in the prices of other products where fuel is an input (such as airfares), as a community we may be less inclined to push for higher wages etc which really would then lead to an inflation problem.
It does mean a decline in living standards (in FT terms, we have to pay more for award flights!), but that's the price we pay if we let the developing world have a bigger share of the world's resources.
JS
Last edited by James S; Jun 19, 2008 at 3:50 am Reason: spelling mistake