BA is passing on higher fuel costs to customers

British Airways says it is increasing fuel surcharges on long and short-haul flights from 2 May.

The airline said the charges reflected high oil prices, which hit a record on Monday just below $120 a barrel.

The surcharge for short-haul flights will increase to £13 per flight from £10, or to £26 for a return flight.

For one-way flights of less than nine hours the charge will increase by £10 to £63, and by £15 to £79 for flights of more than nine hours.

Problems

British Airways has been beset by problems this year.

In addition to high fuel prices, its pilots have threatened to strike over the launch of a new subsidiary and the opening of its Terminal 5 at Heathrow was regarded as a disaster.

Staff at the new terminal were not able to get into work, thousands of bags were mislaid and flights were cancelled.

BA has warned that high fuel bills, an economic slowdown and the cost of Terminal 5 will hit its earnings in 2008.

It has said that jet fuel costs have doubled over the past two years and fuel now accounts for a quarter of the airline's costs.

Last year, BA was fined £121.5m by the Office of Fair Trading and $300m by the US Department of Justice for colluding with Virgin on the level of fuel surcharges that would be added to their ticket prices.

Virgin escaped the fines because it had informed the authorities that the breaches had happened.





