David Robertson, Business correspondent
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Foreign summer holidays are about to get much more expensive after British Airways raised its fuel surcharge for the second time in six weeks despite opposition from passenger groups.
Other airlines are expected to follow with their own price rises, even though the price of oil fell more than 3 per cent yesterday.
BA’s surcharge is increasing to £43 one way for flights over nine hours, up from £38. The surcharge for long-haul flights under nine hours rises from £33 to £38 while short-haul flights remain at £8.
The increases mean that a BA flight to New York next month, for example, will typically cost £276 return but taxes, booking charges and fuel surcharges take the total to £428. The extras are equivalent to 55 per cent of the cost of some flights.
BA, which made a profit of £602 million last year, said that the surcharge is necessary as oil prices have risen recently and this has to be passed on to consumers.
However, the oil price per barrel dropped $2 to $69.22 yesterday and is $10 lower than its peak last year when BA’s fuel surcharge was £35.
The BA move to increase the surcharge was attacked by its rival Ryanair, which called it a “rip-off” and “profiteering”.
The Air Transport Users Council, a consumer body, believes that surcharges are bad for passengers and wants them dropped. James Freemantle, industry affairs adviser at the ATUC, said: “These surcharges don’t bear any relationship to the real costs of fuel. It’s just an arbitary amount they add occasionally when they feel like it.”
Virgin Atlantic has a surcharge of £34 for flights under nine hours and £38 for longer flights. Bmi, the former British Midland, charges £8 for short-haul flights and £30 for long-haul. International airlines operating from the UK, such as American and United, also use surcharges and are expected to increase them. Ryanair and easyJet, the no-frills airlines, do not have surcharges and are critical of their use. Peter Sherrard, a spokesman for Ryanair, said: “This is British Airways’ ninth rip-off fuel surcharge since May 2004.
In that time the price of oil has doubled but British Airways’ fuel surcharge has increased 17-fold. British Airways is profiteering yet again.” EasyJet said it did not believe in surcharges.
Robert Boyle, BA’s commercial director, said: “The cost of fuel has again risen significantly in recent weeks. Unfortunately, we have little choice but to pass on some of this extra cost to our customers.”
The use of surcharges has been criticised by the Office of Fair Trading, which accuses airlines of confusing passengers by advertising low fares and then adding supplements such as taxes and fuel surcharges.
This practice is to be banned but BA and Virgin still break out the extra charges before payment because they believe that it is more transparent.
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If you want to travel then you have to pay. If you don't like the prices then get something cheaper or don't travel at all. In fact this is good in the way that there is an extra encouragement for travelers to spend their holidays in Britain instead of going to over-crowded beaches in Spain and Greece.
Daniel Fernandes, Middle England, UK
Fuel surcharges are simply another way of inflating a low headline ticket price and should be subject of an Office of Fair Trading investigation. I have had the misfortune of being on the e-mailing lists of several airlines who promote their "reduced" or "special offer" deals by offering discounts on flights, only to see the "discount" disappear by the addition of a fuel "surcharge". This 'surcharge' should simply be added to the base cost of the advertised ticket price and if the airlines feel it necessary to increase the charge than the base ticket cost should be increased accordingly. To put it 'below' the line is misleading & infuriating as to see what the 'true' cost of a flight is you ususlly have to go through the whole booking procedure, filling out numerous forms. It's time for the airlines to be honest with the passenger, show it up front and tells us what a flight will really cost before we waste our time going through the booking procedure.
David Harrison, Grantham, Lincs
Here's a typical example of how one major airline misleads the public with its advertising.
"Fly from A to B " for '£xxx' - all airport taxes included. The statement is true, but conceals the fact that fuel surcharges and some airport passenger charges (not technically defined as taxes) are not included in the price advertised.
Some of the low cost carriers are more transparent and honest than this, which is why I use them whenever possible, not only because they may be less expensive.
Not impressed, Sutton Coldfield, UK
the simple solution is not to fly with ba if they are not competitive.
leana, taunton,
Er...maybe I'm missing something but how exactly do rises of £5 count as getting "much more expensive"?
Mark, Worthing,
It's just nonsense to say that the extra charges should be broken out to make them more transparent. It's purely a way of making all those on cheap or "free" tickets pay more. Eg BA has a scheme for friends and relatives of staff to have 7% off flights before taxes, fees, etc. Anyone using miles to book a "free" ticket also has to pay these extras. Including them in the cost of the ticket would mean they would have to be covered by the miles too.
Nothing more than profiteering!
Gordon Dalrymple, Edinburgh,
BA hedges it's jet fuel many years in advance. They therefore have some protection against oil price increases.
If they had had excellent foresight, they could have hedged 100% of their consumption up to 2010 back in 2000 at very low levels.......But they, like many oil traders, completely failed to forsee the massive upswing in prices.......
ab, quimper,