15 Apr '11, 9pm

Increase in fuel surcharge will not deter air travellers: Analysts, agencies

SINGAPORE - Rising oil prices have caused airfares to go up for the fourth time since the end of last year, with Singapore Airlines (SIA) and its subsidiary Silk Air increasing their fuel surcharges on Friday. In the latest hike, surcharges will increase by between US$4 (S$4.98) and US$32, depending on distance and class of travel. Despite the latest increases in fuel surcharges, analysts and travel agencies told MediaCorp that there will be little impact on air travel demand as the outlook remained mixed. In any case, Singapore Management University Assistant Professor Terence Fan noted that the hike in surcharges are still below the highs of 2008. SIA said in a statement on Friday that jet fuel prices have gone up by more than 30 per cent since the start of this year to hit US$138 per barrel - "the highest level in two years", the airline noted. While some travel agencie...

Full article: http://www.todayonline.com/Singapore/EDC110416-0000321/In...

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