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Business News

BA ups surcharge as airlines recover

British Airways is increasing its fuel surcharge by £10 each way on all long haul flights from tomorrow.

The increase will leave economy-class travellers paying a surcharge of £63 each way for flights of less than nine hours, and £76 each way for flights of more than nine hours. The move reflects the increasing price of oil, the airline said.

Separately, the International Air Transport Association (Iata) revised its profit forecast for the global airline industry in 2010 up by nearly 70 per cent to $15bn (£9.5bn), thanks to an "exceptionally strong" third quarter. But despite rising profits, net margins remain weak, at 2.7 per cent this year and 1.5 per cent next, Iata warned.

"We still see the recovery pausing next year after a strong post-recession rebound," said Giovanni Bisignani, the Iata director general. "And the two-speed nature of the recovery is unchanged, with European airlines continuing to underperform other regions."