My Account Menu

CAPA Login

Register to trial CAPA Membership!

British Airways expects more fuel surcharges as oil prices increase

1-Mar-2011 12:49 PM

British Airways head of Sales and Marketing UK and Ireland Richard Tams stated as oil prices increase, more passenger fuel surcharges are likely as opposed to fare increases, adding that there is no prospect of corporate discounts mitigating them (Business Travel News, 28-Feb-2011).

British Airways: "If our business travellers are interested in having a sustainable airline, they will have to accept this. A lot of it is to do with the mechanics of fare-filing. It is much easier for us to do it through the surcharging mechanism; otherwise we would have to refile the entire extent of our fare database. We recognise that means surcharges are not part of the corporate deal, but if they did [become subject to a corporate discount] it would have a massive impact on our revenues. Other costs don't fluctuate in the same way as oil. We desperately need the surcharges to make a profit," Richard Tams, Head of Sales and Marketing UK and Ireland. Source: Business Travel News, 28-Feb-2011.