U.K. airlines British Airways and Virgin Atlantic Airways this week both announced increases to their passenger fuel surcharges, owing to debilitating jet fuel costs. Also citing fuel costs, Northwest yesterday said it would suspend nonstop New York JFK-Tokyo service, effective Oct. 2.
British Airways on Monday said it will increase passenger fuel surcharges on tickets for long-haul flights as the price of oil remains at very high levels in the wake of Hurricane Katrina. Levies on tickets sold in the United Kingdom will increase from £24 per sector to £30 (US$55.17) per sector, while short-haul fuel surcharges remain unchanged at £8 per sector. The airline said it similarly is looking to increase fuel surcharges on long-haul tickets sold outside the United Kingdom.
"We believe that it is better to be transparent with our customers about the price of fuel by showing the level of fuel surcharge they are paying rather than hide the costs by raising fares behind the scenes, like some other airlines choose to," said British Airways commercial director Martin George, noting that the carrier's jet fuel costs are up 400 percent since December 2001.
Like other international carriers, British Airways has raised passenger fuel surcharges several times since introducing them in May 2004
(BTN, June 7, 2004).
At Virgin Atlantic, all tickets now will include an upwardly revised $55 fuel surcharge for every sector. "This surcharge will only recoup about one-third of the cost of fuel for Virgin Atlantic," the airline said in a statement.
Meanwhile, Northwest yesterday said it will cease nonstop flights between New York JFK and Tokyo as of Oct. 2. According to Phil Haan, the carrier's executive vice president of international, alliances and information technology and chairman of NWA Cargo, fuel prices are "severely affecting the financial viability of some routes and forcing us to make some difficult decisions."
Northwest said New York-Tokyo flights last month accounted for 2 percent of systemwide capacity and 8 percent of Pacific region capacity.