BA and Virgin finally cut fuel surcharges

by Ginny McGrath

British Airways and Virgin Atlantic are reducing fuel surcharges by up to £26 on a return flight following widespread criticism of the charges by industry watchdogs.

Last month the Air Transport Users Council (AUC) condemned BA's reluctance to drop surcharges despite the plummeting price of oil, which has now reached around $80 a barrel, versus a high of $147 this summer.

The airline watchdog argued that the BA surcharge bore no relevance to the cost of fuel.

The drop in oil prices has already prompted other airlines, including Cathay Pacific, Thai Airways, El Al, Air France, KLM, Emirates and Singapore Airlines to cut fuel surcharges, but until now BA and Virgin have stuck with their charges, of up to £242 on a return flight.

The new BA and Virgin surcharges will take effect from midnight tonight.

The surcharges are the same for both carriers - £192 for a return flight of more than nine hours and £136 for a flight of less than nine hours for economy class passengers, with higher charges for premium passengers.

Previously, BA had said it would be "a logistical nightmare" to alter fuel surcharges.

The two carriers are currently charged with colluding over fuel surcharges. The Office of Fair Trading has launched a criminal investigation into price-fixing of fuel surcharges on long-haul flights. Four current and former BA executives are due to appear in court next month.