Fuel Surcharges
Published: Tuesday, 3 June 2008, 1:02PM
Jet fuel prices have almost doubled since the start of the year. Fuel is now typically either the top or second-highest single cost item for network airlines, representing some 34 per cent of the cost base, according to Iata.
This share was as low as 13 per cent in 2002 and is now as high as 50 per cent for budget carriers, which have lower staff costs and normally operate at cheaper airports than network airlines.
Some 24 smaller carriers have gone out of business over the past six months due largely to higher fuel prices, and further casualties are expected.
British Airways
British Airways is to increase its fuel surcharge on all tickets from Tuesday.
The surcharge for short-haul flights will increase by £3 per flight (£6 return) from £13 per flight (£26 return) to £16 per flight (£32 return).
The surcharge for long-haul flights of less than nine hours will increase by £15 per flight from £63 per flight (£126 return) to £78 per flight (£156 return)
The surcharge for long-haul flights of more than nine hours will increase by £30 per flight from £79 per flight (£158 return) to £109 per flight (£218).
Virgin Atlantic
On Friday Sir Richard Branson's airline, Virgin Atlantic, implemented fuel surcharge increases, but also said that its economy class passengers would pay lower charges than those sitting nearer the front of the aircraft in premium economy and upper class seats.
From Friday, May 30, the surcharge on economy seat bookings sold in the UK rose to £2.50 to £65.60 for shorter-sector flights and increase £4.50 to £83.50 on longer-sector flights - those from London to Los Angeles, San Francisco, Las Vegas, Tokyo, Shanghai, Sydney, Mauritius, Johannesburg, Cape Town, and Hong Kong.
The premium economy shorter-sector increase will be £12.50 on shorter sectors (taking it up to £75.50) and £16.50 (to £95.50) on longer sectors.
The upper class shorter-sector surcharge rises £22.50 (to £85.50) and it increases £28.50 to £107.50 on longer sectors.
bmi
Airline bmi highlighted the pressure faced by the sector after it revealed profits nearly halved last year.
bmi upped its fuel surcharges in November 2007 as oil prices rose. Its short haul European levy went up £2 to £10 per passenger per flight, and its long haul surcharge rose from £30 to £48.
Ryanair
Ryanair has warned that the high cost of oil will force it to raise fares by around 5 per cent this year.
The airline said: "Based on forward bookings, we now believe it likely that average fares for the coming year will rise by approximately +5 per cent and if oil prices remain at $130 (£66) per barrel, then we expect to breakeven for fiscal 09."
Ryanair has taken several measures to boost income this year, including upping airport check-in charges by 20 per cent to five euros, and checked in baggage costs have risen from nine euros to ten euros.
KLM,
In April due to the high level of fuel prices Dutch airline KLM announced it was to increase its fuel surcharge by 2 euros (£1.60) per segment on flights with Europe and by 10 euros (£7.90) per segment on all intercontinental flights valid on KLM tickets purchased in The Netherlands.
This increase resulted in a fuel surcharge of 31 euros (£24.50) per segment on flights within Europe and of 98 (£77.60) euros per segment on intercontinental flights.
Lufthansa
In response to rising oil prices, Lufthansa is adjusting its fuel surcharge on all its flights.
The fuel surcharge on long-haul routes will be raised by five euros to 82 euros (£65) per flight segment.
The fuel surcharge on domestic German and intra-European routes will increase by four euros (£3) to 21 euros (£16.60) per flight leg.
Qantas,
The Australian flag carrier announced that it is putting up the cost of international flights by 4 per cent.