British Airways is to increase its fuel surcharge on tickets issued in Britain from June 27th because of further oil price rises.
The longhaul fuel surcharge on tickets sold and issued in Britain will rise to £24 from £16; the shorthaul surcharge will go up to £8 from £6, BA said, adding it was still in discussions about other markets.
Oil prices hit a record $60 a barrel in US trading yesterday on worries that strong demand growth will strain global production capacity.
US crude futures on the New York Mercantile Exchange rose $1.91 to $60 a barrel before settling up $1.33 at $59.42, bringing gains this year to 38 per cent. London Brent crude on the International Petroleum Exchange rose $1.38 to $57.96.
Rising demand from the United States, China, and India have caught world producers and refiners off guard, leaving little spare capacity in the event of a supply disruption.
BA forecast a fuel bill for its 2005/06 financial year of around £1.6 billion, some £450 million higher than in 2004/05.
BA said its additional fuel surcharge only applies to tickets issued from June and does not apply to tickets already paid for and issued.
BA introduced a £2.50 surcharge in May 2004 for both longhaul and shorthaul flights.