Tuesday 1 February 2011

Airfares rise on fuel price increase

: Increasing jet fuel prices will mean increasing airfares.

Rising aircraft fuel prices have reappeared on the radar as airlines look to fuel surcharges to limit their expenses.

The International Air Transport Association (IATA) have released figures saying that fuel prices have increased 27% from this time last year to US$110 a barrel, the highest they've been in two years. The price has risen dramatically in the past month according to the IATA, up 7.1%.

A number of airlines are keeping a close eye on their costs including Virgin Blue and Qantas. Qantas chief executive Alan Joyce told Reuters that the company would look at increasing airfares to offset the cost of fuel.

“The fuel price has gone up considerably so I think it’s in every airline’s interest to recover these costs,” Joyce said.

International carriers Cathay Pacific and Singapore Airlines have already acted by increasing their fuel surcharge fees.

This issue comes at a time when Queensland's tourism industry are working to minimise the impact of the flood crisis in the State's south.

Industry leaders including the chiefs of Flight Centre, Harvey World Travel, and Travelscene American Express, head of Tourism Queensland Anthony Hayes, Queensland Tourism Industry Council's Daniel Gschwind, and others gathered in Brisbane last week to devise a strategy to promote travel to the State.

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Mat Churchill, 01-02-11 11:40:

I've read reports that the cheapest Qantas flight from Cairns to Sydney has increased to $1,131 today.

Penny Cole , 01-02-11 11:25:

I hope these price hikes don't effect people trying to get away from the oncoming cyclone yasi!! Have heard some scary stories of price hikes today.!!