British Airways World Cargo Increases Fuel Surcharge (13/03/2003)

British Airways World Cargo announced today that it will increase its fuel surcharge to GBP0.12/kg or local equivalent, effective from 27th March 2003.

The increase to the fuel surcharge has been caused by the continued rise in fuel prices, causing the fuel index to exceed the level 4 (four) threshold for two consecutive weeks. The index was developed by British Airways World Cargo to provide customers with more information about the calculation of fuel surcharges and is updated on the British Airways World Cargo website weekly.

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

Commenting on the change to the index, Keith Packer, Senior Vice President Global Sales and Marketing for British Airways World Cargo, said: "Fuel costs have continued to rise in recent weeks and we feel that it's appropriate to create these two additional thresholds in the event fuel prices continue to rise. Whilst we hope that additional increases will not be necessary we believe that providing this information now will be useful to our customers. This is in keeping with our policy of providing total transparency of information for our customers."

Based on the fuel index methodology, if the fuel index exceeds 225 for two consecutive weeks the fuel surcharge will be increased to GBP0.16/kg or local equivalent. If the fuel index decreases below 175 for two consecutive weeks the fuel surcharge will be reduced to GBP0.09/kg or local equivalent.

Calculation of Charges
The British Airways World Cargo fuel index is based on the average price of aviation fuel in four key spot markets; North West Europe, Singapore, Los Angeles and US Gulf. These averages are monitored against a fixed base of USD 0.513 per US Gallon, equal to index 100, and from this a weekly fuel price index will be published. Fuel surcharges will be determined when the index reaches specific trigger points as shown in the table below for two consecutive weeks:

This index is a guideline only. British Airways World Cargo reserves the right in its discretion to apply different rates where required by local government, legislative bodies or commercial considerations. British Airways World Cargo reserves the right in its discretion to suspend the index at any time, and to change rates without notice.