ba airfares increase for Higher Oil Prices

The airline group created by the merger of British Airways and Spain's Iberia has warned passengers that they face rising fares and fuel surcharges following the latest surge in the oil price.Many airline shares have taken a hit on forecastsw that revenues will fall.
As a result, airfares and profits have come under pressure. The north Atlantic is the most lucrative business class market in global aviation, accounting for more than a quarter of the industry's premium revenues.
British Airways head and chief executive of International Airline Group Willie Walsh said the airline would keep the surcharge situation under review, after having gone through an increase twice in the past two months.

"We have had recent surcharge adjustments," he said, referring to BA increasing its fuel levy twice in as many months. "We will keep the situation under review. Everybody needs to understand that a high input price for oil does ultimately find its way through to the consumer."

This month BA increased the charge for long-haul return trips in economy and premium economy cabins by £24 a return trip, with business and first-class return journeys rising by £34. The levy for a family of four travelling economy class to Florida is now £704 for a return journey.

The former BA chief said: "What we have seen is some prices increasing, and you will witness that even with low-cost carriers. You will see them looking in their usual innovative way at getting more money out of the consumer."

Fare levels are already recovering from the global downturn, rising 10% last year as demand for business class tickets revived.
“With fuel prices rising, carriers need to offset this with extra revenue however possible. We’ll see air fares increase, fuel surcharges and baggage fees all steadily rise,” said Saj Ahmad, aviation analyst with London-based FBE Aerospace.