Changes to the surcharges aren't required as British Airways has 80% of its fuel needs for the financial year ending March 31, 2006 hedged at $48 a barrel, Walsh said. For the following financial year, it has 54% of its fuel needs hedged at an average cap of $57 a barrel, he said.
Earlier Friday, the U.K. airline posted slightly higher third-quarter profits and raised its guidance for full-year revenues.
Walsh said he expects to see a slight improvement in yields, or average fares, over the second half of the financial year. He reiterated that he still doesn't expect the company to hit a targeted 10% operating margin over the year.
Walsh added that the airline is actively talking to Boeing Co. (BA) and Airbus (ABI.YY) but has no plans to order new long-haul aircraft at this stage. BA doesn't expect to take delivery of new planes before its transfer to Heathrow Airport's new fifth terminal in early 2008.