BA profits soar but ticket surcharge stays

British Airways today warned that fuel surcharges which add £20 to every ticket are likely to stay in place for the rest of the year because of the soaring price of oil.

The surcharge, which was slapped on last May, will remain for the "foreseeable future", BA executives said.

British Airways issued the warning even though latest trading figures show the carrier is on course to record its biggest profits since the turn of the millennium.

"We have no plans to take the surcharges off," said finance director John Rishston.

"Though we are reviewing them on a week-by-week basis, they will remain while the oil price remains high. The oil price is 53 per cent higher than it was in 2003 and we believe it will stay there for the foreseeable future, which we see as being over the next year."

However, if other airlines begin to undercut BA it is reserving the right to change its mind.

"The decision will be made on several elements including the oil price and a review of our competitive position," added Mr Rishston.

The surcharges offset the worst ravages of the oil price, which has put ?106 million on the fuel bill of the airline over the last three months, a rise of nearly 50 per cent year on year.

While that slowed profit growth during the Christmas period, British Airways' earnings for the nine months to 31 December were ?410 million, more than double where they were last year.

Chief executive Rod Eddington said that the return to huge profits is down to his controversial restructuring of the airline which resulted in the cull of 13,000 workers.

There are also signals that passengers are returning to the airline in increasing numbers.

Latest monthly statistics show that passenger numbers soared by more than eight per cent with a 12 per cent growth in the highly-lucrative first and business class cabins.

BA shares opened at 2701/2p today, their highest since last summer and up from the 86p they dipped to in 2003.