BA fuel surcharge

[Jakey Rowling]

BA to increase fuel surcharge.

http://news.bbc.co.uk/1/hi/business/7091030.stm

Others to follow I would expect.

 

[wayneg]

Is there a financial reason airlines charge a fuel surcharge instead of increasing ticket price?
BA quote an inclusive fare if get a quote so do they for example not pay tax on a fuel surcharge or is it just they can add it onto already sold flights?

Anyone know?

 

[AliceGardner]

Is there a financial reason airlines charge a fuel surcharge instead of increasing ticket price?
BA quote an inclusive fare if get a quote so do they for example not pay tax on a fuel surcharge or is it just they can add it onto already sold flights?

Anyone know?

Yes, because quite a lot of people buy award flights with airmiles. With award flights, you have to pay "taxes plus any surcharges" too. If the airline just raised the cost of the fbase are (instead of adding a surcharge), then people paying with miles would not have to pay the increase.

Virgin is expected to follow very soon behind BA (as usual).

Alice