Travel insurance customers see BA add fuel surcharge

Wednesday, 29 June 2011

People going on holiday who have taken out travel insurance could also have to pay out an extra charge on long-haul flights, as British Airways (BA) has announced a fuel surcharge.

The changes will mean that after April 20th customers can be expected to see a £10 increase, and a £20 addition to their ticket prices, on longer flights.

Nick Swift, chief financial officer at BA, said: "As customers will know from the price at the petrol pumps, the cost of fuel has continued to rise significantly over the past three months.

"For us, fuel now represents over one-third of our costs and particularly affects our long-haul flights."

However, he added that the airline was "very aware" of the pressures that face travel insurance customers, and noted that the company will try to keep increases to the surcharge to a minimum.

Recently, Sean Tipton, a spokesman for the Travel Association (ABTA), said that although it is not the law for holidaymakers to take out insurance they would be foolish not to.

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