When I spend hundreds of pounds on a transatlanic air fare, and hear the airlines complain on high fuel costs, I wonder how much of the money I pay is for fuel.
British Airways have just raised their fuel surcharge to 6 pounds per long haul flight, stating that the surcharge is to cover the 12.5% rise in fuel cost that they've just had. So that means that fuel costs are 48 pounds per single transatlantic flight, or 96 pounds on a return ticket. I think I trust this estimate - someone else talked about a 45% fuel cost rise over a year and how the surcharge covers a third of it ... and I understand that Virgin Atlantic have also applied a similar 6 pound charge. I also note that BA have just announced a 115 million pound profit for the first three months of their year, as opposed to a loss for the same quarter last year.
On Petrol (Gas) in the UK, I understand that over 80% of the cost is tax. In other words, the effective tax rate is between 400% and 500% ....
