Following last month announce increasing its fuel surcharge to GBP 0.12/kg or local equivalent as from 13th May 2004; British Airways World Cargo has recently announced a further increase on fuel surcharge to GBP 0.16/kg or local equivalent, effective from 10th June 2004.

The increase to the fuel surcharge has been caused by the continued rise in fuel prices, causing the fuel index to exceed the level 5 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. It is updated on a weekly basis and posted on the British Airways World Cargo website.

Based on the fuel index methodology, if the fuel index exceeds 250 for two consecutive weeks the fuel surcharge will be increased to GBP 0.20/kg or local equivalent. If the fuel index decreases below 200 for two consecutive weeks the fuel surcharge will be reduced to GBP 0.12/kg or local equivalent.

Separately, the company informed customer confidence boosts British Airways World Cargo Results with flown revenues of £463 million, for the financial year ended 31st March 2004. During the year, the volume of cargo traffic carried across the airline's international network increased by a healthy 6% to 4,460m Cargo Tonne Kilometres (CTKs) from 4,204m CTKs in 2002/2003.