Valerie Elliott and Christine Buckley
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Families are facing holiday misery this summer after big airlines sharply increased fuel surcharges on their flights, bringing the era of cheap air travel to an end.
Virgin Atlantic is imposing new charges today and, from Tuesday, British Airways long-haul passengers will have to pay £218 on top of the ticket price simply to cover the cost of fuel.
Other airlines, struggling to cope with fuel bills but wary of raising ticket prices for fear of losing customers, are introducing new fees for services, such as baggage handling, more leg room and even a window seat.
The BA increase, the second in a month, means that a family of four booking a trip to the West Coast of America on Tuesday will have to pay £240 more than they would have done yesterday. Shorter flights will also cost more, but those who have booked and paid for their trips will escape the extra charges.
Virgin Atlantic surcharges have risen by between £2.50 and £16.50, depending on the travelling class and length of flight. Ferry companies have already announced that their passengers will be asked to pay a fuel surcharge for the first time.
In the past two months, Air New Zealand has increased its fuel surcharge twice, while Japan Airlines this week raised its charges on flights to Europe and America by 40 per cent. Lufthansa and KLM have also hit passengers with higher ticket prices.
Analysts predict more increases in the coming months and industry experts say that airlines are likely to seek costs from passengers, such as higher baggage fees. Some carriers have already cut services and others, including those offering transatlantic flights, have gone out of business.
In America, airlines have tried to avoid raising ticket prices but have devised other means of extracting more cash from passengers. American Airlines is to charge a one-way $15 fee for the first piece of luggage checked in; US Airways is charging another $30 for travellers who want a window seat; Jet Blue is adding a $10-$20 fee if passengers require extra leg room.
BA refused to rule out more rises. Douglas McNeill, an analyst with Blue Oar Securities, said: “One more round of increases is likely at least. I wouldn’t rule out a second.”
James Fremantle, of the Air Transport Users Council, said passengers would be confused by the hikes. “It seems to me that the bulk of the price for a flight these days is for the supplement. You can get some flights to New York for just over £100 and then you are probably paying £200 on taxes, surcharges and supplements. The problem is that every company advertises ticket prices in a different way.”
Lorna Cowan, editor of Which? Holiday, said: “It is all very well airlines adding these fuel surcharges but when fuel prices come down
how often are passengers offered discounts? I think consumers will be wary about splashing out on far-flung holidays as this increase is a substantial amount. Many people this year will be tempted to stay in the UK.”
But Sean Tipton, of the Association of British Travel Agents, praised BA for being open about surcharges and said there could even be a weekend rush for summer bookings to beat the higher charges.
A BA spokesman was confident that, after the half-term holiday washout, bookings to Florida and California would rise for summer. “The extra charges are not being imposed retrospectively and there is still a window of three or four days when people can book at the lower rate,” he said.
Peter Smith, of travelsupermarket.com , said that people would still pay for an annual holiday but might do without weekend breaks. He did not expect a rush to book before Tuesday. “People like to research their holidays and most would prefer to pay an extra £15 or £30 on a ticket knowing they get what they want.”
The breakdown
BA flight London to San Francisco:
£287 cost of ticket
£218 fuel surcharge
£80 tax
£3.50 credit card charge
£2.50 insurance and security surcharge
Total: £591
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