As a reaction to the rising price of oil, British Airways has announced that as of this Thursday it will be adding an extra £10 to the fuel surcharge on its long haul tickets. Because the new charge applies to each sector of a journey taken, the price of a return ticket to many destinations will rise by £20.
Airlines around the world first started adding a surcharge to ticket prices on longer journeys as a way of combating the rising price of jet fuel. The additional ‘tax’ now makes up a substantial portion of the value of most tickets. BA said it would not be placing the charge onto the price of its short haul flights.
The surcharge could now be as much as £108 depending on how far a customer is flying and the type of class they have chosen to fly in. BA has not increased its jet fuel surcharge since the middle of 2008 and has actually reduced it twice since that time.
According to the International Air Travel Association (IATA) the rising price of crude oil is going to be a major problem for many airlines over the next twelve months. The body predicts that the average price of a barrel of oil in 2011 will be $84. This year it was $79.
In August, the price of oil was hovering around the $72 mark; it is now just over $90 for a barrel. According to IATA, the price of jet fuel has risen by 17.6 per cent over the past year.