09 Feb '11, 12pm

Passengers to pay more due to higher fuel surcharge

SINGAPORE : Passengers will have to pay more this year as various airlines increase their fuel surcharge. Earlier this month, both Qantas and British Airways raised their fuel levy, while Singapore Airlines (SIA) has increased its surcharge twice in the last two months. Analysts said airlines are scampering to cover the cost of rising jet fuel, which has jumped 33 per cent from a year earlier to around US$116 per barrel. Apart from raising fares, airlines are also taking other steps to protect their margins from being eroded by more expensive fuel. Vacations and business travel this year will become costlier. Analysts said airlines are raising prices and surcharges as the aviation industry revives and as jet fuel price soars. Jet fuel, which is derived from crude oil, has seen its price rise as the current unrest in Egypt stokes fears of disruptions in supply of crude from...

Full article: http://www.channelnewsasia.com/stories/singaporebusinessn...

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