BA cuts fuel surcharges on long-haul flights – 12 Jan 2007

British Airways has cut its fuel surcharge on long-haul flights of less than nine hours by £5 to £30 following a sharp fall in the price of oil.

But the reduction merely mirrors action taken by some of its rivals more than three months ago, and BA will retain a £35 surcharge on flights longer than nine hours as well as an £8 surcharge on short-haul flights.

The oil price has fallen from a high of $80 a barrel last summer to below $55 this week.

Virgin Atlantic and Air France-KLM reduced their surcharges in September, when Air France also promised to mirror any fall in the oil price that lasts for a month or more.

However, BA’s surcharge is included in fares from the outset and not added merely at the point of booking. It appears as an item in a breakdown of the price.

All airlines acknowledge that customers pay for the cost of fuel whether it is incorporated in the fare or shown separately.

TUI UK became the first major tour operator to axe fuel supplements on prices in December. For legal reasons, tour operators refer to the additional charge for fuel they add to holiday prices at the time of booking as a supplement. Airlines are not bound by the same regulations and call it a surcharge.

Travel Weekly revealed today that the Office of Fair Trading has promised a “substantive announcement” on fuel supplements charged by holiday firms next month.