British Airways defends fuel surcharge policy
October 21, 2008British Airways has rejected suggestions that it is relying too heavily on fuel surcharges to fund rising costs, Travel Mole reports.
The national carrier hit back at claims that it is now meeting the cost of fuelling its aircraft almost entirely through the levy imposed on passengers.
Despite recently lowering its surcharge after a similar move by rival carrier Virgin Atlantic, British Airways rolled out a raft of staggered price hikes over the summer.
According to reports that surfaced over the weekend, in May the airline earned between £78 and £98 in surcharges for long-haul flights less than nine hours.
That works out at a total of £19,140 on a Boeing 777 flight from London to New York, which almost completely covers the £20,173 fuel bill for the journey.
The price of a barrel of oil now stands at $75 - just more than half the all-time high $147 peak seen in July.
British Airways agreed to lower its fuel surcharge this month, having previously insisted that fuel hedging and an unfavourable exchange rate with America had absorbed any gain from falling oil prices.
© Adfero Ltd
