Is it all due to higher costs?
There is some honesty in life after all. SQ have declared in its first half 2004/05 results/outlook that though their fuel costs increased by SIN$333, there is more to that number than meets the eye.
Total fuel costs increased by $524 but $191m of offsets were achieved by exchange gains ($32m.) and 'higher hedging gain' ($159). The increases? 39.7% cost of fuel increase ($325m.) and, wait for it, 37.2% increase in the level of volumes uplifted ($199m.): more flying. So we therefore see that their huge cost incease is not soley the cause of price hikes.
Have the Qantas mob and Virgin considered any volume increases when assessing the levels of their surcharges? At least there is some transparency in Singapore.