Qantas, Singapore latest to up fuel surcharge

09/03/11 14:49 CET

economy

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Qantas and Singapore Airlines are raising fuel surcharges to offset higher oil prices.

For the Australian carrier it was the second such rise in two months.

Singapore increased its surcharge for the third time since December and said it will closely monitor fuel prices.

It followed similar moves by US airlines this week.

Cathay Pacific has also warned soaring fuel prices could hurt its profits.

“Ticket prices have to go up by about five to six percent just to accommodate the extra cost on their oil,” said Andrew Herdman, director general of industry body Association of Asia Pacific Airlines.

Fuel accounts for up to a third of an airline’s operating cost, and a steep price rise could hurt the industry’s efforts to recover from the effects of the global financial crisis.

More about: Airlines, Economy, Oil market

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