23 June 2008

Oil prices push BA first class seat cost

All that we seem to hearing about over the last few weeks is how the oil price crises is affecting almost every aspect of our life. And this price increase has struck in the airline industry once more, this time affecting the cost of Business, Club World and World Traveller Plus seats at British Airways.

In order to make some of their costs back, BA has increased the prices for their customers that enjoy the extra benefits of premium seating (extra baggage, space, meals, etc.). Their "first class" customers will have to pay a little bit more to cover the costs of the fuel. It is the third time this year that BA has had to increase the fuel surcharge in the face of constantly rising oil prices.

Last week it was Qantas that was facing problems due to oil prices and reports from Morgan Stanley state that there could be as much as a 40% increase in fares, an event that would strike at the very heart of the tourism industry.

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