Ba and iberia signal possible surcharge increase

Passengers flying with British Airways and its partner carrier Iberia are likely to face further fuel surcharges, the boss of the merged airlines said today.

Both airlines were watching the Middle East situation closely for its impact on fuel prices, said International Airlines Group (IAG) chief executive Willie Walsh. He went on: "We are keeping the situation under review and we will adjust the fuel surcharge if we think it's necessary.

"There has been an increase in the volatility of the fuel prices over the last few weeks. It is likely that increases will be seen in the market and this will affect all airlines and will be a challenge to the industry." Mr Walsh, formerly the chief executive of British Airways before the Iberia merger, was speaking as IAG announced financial figures today.

The combined group posted pre-tax profits of 21 million euro (£18 million) for the three months to December 31, compared with losses of 208 million euro (£177 million) a year earlier. The return to the black came despite severe weather in the UK and a Spanish air traffic controllers strike which disrupted the airlines' operations and reduced revenues by 71 million euro (£60.4 million).

Source: The Independent