BA raises fuel levy for 10th time

British Airways, beset by market rumours that a fresh profit warning is imminent, hiked its fuel surcharges yesterday in response to the rising cost of oil.

From Friday the surcharge will rise by

BA shares closed near their recent year-low at 221p yesterday amid widespread speculation that it will issue its second profit warning of 2008 next month. BA warned last month that a global downturn in the airline market was under way as it said profit margins would be 7% in 2009, down from an expected 10% in 2008.

Analysts expect BA to miss that target, which presumed that oil would average $85 a barrel over the financial year. The Terminal 5 fiasco is also expected to cost the airline more than the