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LONDON - British Airways said it was lowering fuel surcharges on many routes as crude oil prices hit fresh 19-month lows today.
"British Airways is to reduce its fuel surcharge on its shorter longhaul routes from tomorrow ... as a result of a fall in the price of oil," Europe's third-largest airline said in a statement to the London Stock Exchange.
The fuel surcharge on tickets sold in the UK for longhaul flights of less than nine hours will be reduced to 30 pounds ($85) per flight from 35, it said.
Charges on longer flights would remain at 35 pounds and the airline's shorthaul fuel surcharge will remain at 8 pounds, BA said.
BA will reduce its fuel surcharges by equivalent levels in all markets, it said.
Top European carrier Air France-KLM said it was not planning to change its Air France surcharges for now.
Comment from KLM, which operates its network separately, was not immediately available.
Number-two ranked Lufthansa of Germany said it was watching the change in crude prices. "We are observing the market and the oil price, but there are currently no plans to change the surcharge," a spokesman said.
BA has held the surcharges at their current levels since last April.
"Despite the recent drop in oil price, our fuel costs remain a real burden. It is our second largest cost after employee costs," BA Commercial Director Robert Boyle said.
Last June, UK and US authorities raided the offices of BA and several other airlines as part of a probe into possible cartel activity regarding fares and fuel surcharges.
In October, BA commercial director Martin George and head of communications Iain Burns resigned after being linked to the investigation.
BA shares were up 0.5 per cent at 556-1/4 pence as of 1629 GMT.
- REUTERS
