BA raises fuel surcharges further

BA's fuel bill is set to top £2bn

British Airways (BA) is to increase its fuel surcharges by up to £15 per ticket on bookings made from 15 November.

The airline says the decision "reflects new record oil prices and takes into account rising fuel costs".

Surcharges for longhaul flights of less than nine hours rise by £10 per flight to £48 (£96 return), and for longer routes by £15 to £58 (£116 return).

For shorthaul flights, the surcharge imposed by BA will increase by £2 to £10 per flight (£20 return).

"The cost of oil has reached record levels, rising by more than $20 per barrel since we last increased our fuel surcharge in June 2007," said BA's commercial director Robert Boyle.

BA said it expected the cost of fuel to rise by £136m in the second half of the current financial year, with the total fuel bill set to top £2bn for the first time.

Last week, the price of oil hit record levels when it broke through the $98-a-barrel level, and many analysts think the price will hit $100 before too long.

The price of oil has been rising steadily as a result of concerns over supplies and the weakness of the US dollar.

BA first introduced a fuel surcharge in May 2004, when it imposed a charge of £2.50 on shorthaul and longhaul flights, or $4 for all flights booked outside the UK.

Earlier this year, BA was fined a total of £270m by UK and US competition authorities after it admitted collusion in fixing the prices of fuel surcharges with rival Virgin Atlantic.