BA adds fuel surcharge to ticket prices

British Airways (BA) has become the latest in a growing list of airlines to impose a fuel surcharge to ticket prices because …

British Airways (BA) has become the latest in a growing list of airlines to impose a fuel surcharge to ticket prices because of surging oil prices.

Europe's second-biggest airline said today it would add a fuel surcharge of £2.50 (€3.71) from May 13th and would review the charge on a regular basis.

Political tensions in the Middle East and rising demand from China have pushed oil prices over $40 a barrel for the first time in 13 years.

Although prices slipped back today after Saudi Arabia called on OPEC to increase production, they remain near record highs.

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BA shares were up 2.8 per cent at 261 pence in morning trade.

The BA decision comes on the same day that Australia's biggest airline, Qantas, announced fuel surcharges between A$6 (€3.50) and A$15(€8.82) to tickets.

German airline Lufthansa this week raised its jet fuel surcharge for its cargo business, while Scandinavian airline SAS  has said it is considering a surcharge.

BA's fuel surcharge applies to all fares sold across its global network. In all markets outside Britain, a surcharge of $4 per single flight will be added.

Fuel costs account for about 11 per cent of BA's total costs, and a company spokesman said earlier this month that costs were likely to be £100 million sterling higher in the year to March 2004 than the year before.