Statement on Fuel Surcharge (23/09/2004)

British Airways World Cargo today announced that it has increased its fuel surcharge to GBP0.20/kg or local currency equivalent, effective from 7th October 2004.

The increase to the fuel surcharge has been caused by the continued rise in fuel prices, causing the fuel index to exceed the level 6 threshold for two consecutive weeks.

Keith Packer, Senior Vice President Commercial, said: "Fuel prices have reached unprecedented levels and the cost to our business is growing. By announcing this increase, we feel that it's vital that we're open and honest with our customers and this remains our priority. This is a clear indication that we will continue to abide by our methodology and we're confident that customers will recognise the importance of this in their planning."

To provide clarity for our customers in the event of further significant fuel price increases, British Airways World Cargo are also announcing two additional surcharge increments, as detailed in the table below.

Increasing Fuel Index Fuel Surcharge

Exceeds 310 GBP 0.26/kg

Exceeds 280 GBP 0.23/kg

Decreasing Fuel Index Fuel Surcharge

Below 280 GBP 0.23/kg

Below 250 GBP 0.20/kg

Based on the fuel index methodology, if the fuel index exceeds 280 for two consecutive weeks the fuel surcharge will be increased to GBP0.23/kg or local equivalent. If the fuel index decreases below 225 for two consecutive weeks the fuel surcharge will be reduced to GBP0.16/kg or local equivalent.