Fear that travellers will cut out travel insurance to cut costs as BA add a further long haul surcharge



British Airways announcement that it would be adding a fuel surcharge to its long haul flights due to the rise in oil prices has prompted fears that travellers will cut back in other areas including travel insurance.

With insurance so valuable on holidays, particularly outside of the EU, the news of extra charges will come as a big worry to experts, who still urge travellers to make sure they are fully covered.

The extra costs associated with a broken leg and subsequent operation on holiday can be as high as £25,000 and the traveller would have to find that money from their own pocket without adequate insurance.

BA announced the changes today adding that economy seats would be given a £10 increase, and premium flights a £20 increase on all flights after the 20th April.

The charges will only affect long haul flights, and not domestic and short haul ones.

Brent Crude is currently trading at $122 a barrel, the highest price for two and a half years, and still rising due to the continuing troubles in the Middle East.

The total long haul surcharge for a BA flight is now rising from £75 to £85 for less than nine hour flights, and from £88 to £98 for more.

Financial officer Nick Swift 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.”

“We are very aware of the wider economic pressures on our customers at the moment and we will bear the vast majority of the recent fuel price rise ourselves to keep this increase in surcharge to a minimum.”

It’s not only BA who are having to increase prices. Thomas Cook added an extra £15 per holiday to their short haul flights, and £40 a holiday to long haul ones last month and other airlines will follow suit.

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