Fuel surcharge increase

British Airways PLC 24 June 2005 FUEL SURCHARGE INCREASED British Airways is to increase its fuel surcharge on flights from Monday 27 June, 2005 as a result of further rises in the price of oil. The longhaul fuel surcharge on tickets sold and issued in the UK will increase from £16 per sector to £24 per sector (£48 return trip). The shorthaul fuel surcharge will increase from £6 per sector to £8 (£16 a return trip). Martin George, British Airways' commercial director, said: 'The continuing rise in global oil prices to almost US$60 a barrel means a further surcharge increase is regrettably unavoidable. We now expect our fuel bill for this financial year to be around £1.6 billion. 'Our estimated fuel bill for this year will now be more than £450 million higher than our fuel costs last year. This additional fuel surcharge will help to offset the recent sharp increases in the price of fuel.' Total revenue for the year to March 2006 is now expected to improve by 4.5 - 5.5 per cent, up from the 4 - 5 per cent figure issued at the airline's full year results on May 13, 2005, due to the impact of these latest fuel surcharges. The additional fuel surcharge only applies to tickets issued from Monday, June 27, 2005. It does not apply to tickets already paid for and issued. ends Friday 24 June, 2005 Notes to editors: History of fuel surcharges on all British Airways' flights booked in the UK since May 2004. May 13, 2004: Introduced a £2.50 per sector surcharge on longhaul and shorthaul. For all flights booked outside the UK the airline introduced a fuel surcharge of USD $4 per sector. August 11, 2004: Surcharge increased to £6 per sector on longhaul. Shorthaul remained at £2.50. Outside the UK, the longhaul fuel surcharge increased to USD$10 per sector with shorthaul remaining at USD $4. October 14, 2004: Surcharge increased from £6 to £10 per sector on longhaul and from £2.50 to £4 per sector on shorthaul. Equivalent rises in other markets outside the UK. March 22, 2005: Surcharge increased from £10 to £16 per sector on longhaul and from £4 to £6 per sector on shorthaul. Equivalent rises in other markets outside the UK. Certain information included in this statement is forward-looking and involves risks and uncertainties that could cause actual results to differ materially from those expressed or implied by the forward looking statements. Forward-looking statements include, without limitation, projections relating to results of operations and financial conditions and the Company's plans and objectives for future operations, including, without limitation, expected future revenues, financing plans and expected expenditures and divestments. All forward-looking statements in this report are based upon information known to the Company on the date of this report. The Company undertakes no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events or otherwise. It is not reasonably possible to itemise all of the many factors and specific events that could cause the Company's forward looking statements to be incorrect or that could otherwise have a material adverse effect on the future operations or results of an airline operating in the global economy. Information on some factors which could result in material difference to the results is available in the Company's SEC filings, including, without limitation the Company's Report on Form 20-F for the year ended March 2004. This information is provided by RNS The company news service from the London Stock Exchange

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