Virgin Atlantic and British Airways Lower Fuel Surcharges

Virgin Atlantic and British Airways are lowering their fuel surcharges as much as £26 for return flights. Their decision came after widespread criticism about the fees from the Air Transport Users Council. The Council condemned the reluctance of British Airways last month to lower the surcharges even though the price of oil was plummeting. Now oil has reached about $80 per barrel instead of the $147 over the summer. They argued that the surcharge had no relevance to the fuel costs.

The reduction is going to lower the cost on long-haul flights, such as to Los Angeles, and both of the carriers will price it at £192. For shorter flights, like to New York, the airlines will charge £136. The surcharges placed on first class and business travelers, however, will not change, nor will the fee change for those who are traveling on shorter services. The new surcharges were put into effect at midnight last night for both Virgin Atlantic and British Airways.

A spokesperson for Virgin Atlantic said that they keep their fuel surcharges under review all the time, and they will adjust them when they see that it is appropriate. He continued saying that their fuel bill is expected to increase to £3.1 billion during this year, and it remains their biggest cost, representing around 35% of their cost base, which was closer to 10% five years ago. Even though the price of oil is lower now, the conditions of trading in the market remain challenging, he added.

Furthermore, the Office of Fair Trading is conducting a criminal investigation of the two airlines for price-fixing the fuel surcharges on their long-haul services. Next month, four of British Airways’ current and former executives are to show in court.

Get more information on Virgin Atlantic at www.virgin-atlantic.com -or- British Airways at www.britishairways.com