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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