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11/05/2004
Air carriers up fares following oil price rises
British Airways and Qantas will increase ticket prices with fuel surcharges in response to the rising price of oil, the airlines have announced today.
According to Bloomberg.com, oil prices surged 6.8% to $40 a barrel in the US on Friday, amid concern that US gasoline supplies may not meet summer demand and as unrest in Saudi Arabia and Iraq has threatened the oil infrastructure.
As a result, BA announced that it would add £2.50 per ticket (£5 for a return trip) as a separate fuel surcharge to its fares in the UK with effect from Thursday, May 13.
In all markets outside the UK, a surcharge of US$4 per ticket will be added. The fuel surcharge applies to all fares sold across BA's global network.
A BA spokesperson said: "Due to the continuing fluctuations in the price of oil British Airways will review this surcharge on a regular basis with a view to adjusting it when appropriate."
Qantas confirmed today that it would introduce its surcharge on tickets sold after midnight on May 17.
The fuel surcharge will be $6 per ticket for Qantas Domestic, QantasLink, Jetstar and domestic New Zealand services and $15 per ticket for Qantas International services and Australian Airlines.
The Chief Executive Officer of Qantas Airways, Geoff Dixon, said: "Fuel represented about 15% of Qantas' costs last year, the second largest cost to the Group after salaries and wages.
"The US dollar price of jet fuel today is almost 60% higher than it was 12 months ago - US$44 a barrel compared with US$28 a barrel - and this has significantly increased the cost to our business."
Mr Dixon said the main reasons for the jump in the fuel price were continuing tensions in the Middle East and strong global demand, particularly from the US and China.
The last time Qantas introduced a passenger fuel surcharge was in late 2000 after jet fuel prices rose to more than US$43 a barrel in October 2000 due to surging global demand.
(gmcg)
According to Bloomberg.com, oil prices surged 6.8% to $40 a barrel in the US on Friday, amid concern that US gasoline supplies may not meet summer demand and as unrest in Saudi Arabia and Iraq has threatened the oil infrastructure.
As a result, BA announced that it would add £2.50 per ticket (£5 for a return trip) as a separate fuel surcharge to its fares in the UK with effect from Thursday, May 13.
In all markets outside the UK, a surcharge of US$4 per ticket will be added. The fuel surcharge applies to all fares sold across BA's global network.
A BA spokesperson said: "Due to the continuing fluctuations in the price of oil British Airways will review this surcharge on a regular basis with a view to adjusting it when appropriate."
Qantas confirmed today that it would introduce its surcharge on tickets sold after midnight on May 17.
The fuel surcharge will be $6 per ticket for Qantas Domestic, QantasLink, Jetstar and domestic New Zealand services and $15 per ticket for Qantas International services and Australian Airlines.
The Chief Executive Officer of Qantas Airways, Geoff Dixon, said: "Fuel represented about 15% of Qantas' costs last year, the second largest cost to the Group after salaries and wages.
"The US dollar price of jet fuel today is almost 60% higher than it was 12 months ago - US$44 a barrel compared with US$28 a barrel - and this has significantly increased the cost to our business."
Mr Dixon said the main reasons for the jump in the fuel price were continuing tensions in the Middle East and strong global demand, particularly from the US and China.
The last time Qantas introduced a passenger fuel surcharge was in late 2000 after jet fuel prices rose to more than US$43 a barrel in October 2000 due to surging global demand.
(gmcg)
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