From the SMH:
Rex lifts airline fuel surcharge
May 23, 2008 - 6:38PM
Country airline Regional Express Holdings Ltd (Rex) has followed on the heels of Qantas Airways Ltd and lifted its fuel surcharge for the second time in less than a month due to the sustained surge in world oil prices.
Rex said it would increase its surcharge by $4 to $40 per sector from May 27.
The regional carrier raised its fuel surcharge by $3 to $36 per sector on May 13.
Australia's biggest airline, Qantas, said its international air fares would rise by about four per cent and domestic fares by about three per cent from June 4 for tickets issued in Australia.
That hike, a result of rocketing fuel prices, follows Qantas' increase in ticket prices that came into effect on May 9.
The price of a barrel of crude oil, from which jet fuel is a derivative, has been hitting record prices lately, touching $US135 a barrel.
Overnight crude oil for July delivery closed at $US130.81 a barrel.
Rex general manager network strategy and sales Warrick Lodge said the airline responded to the rising oil prices.
"Rex is providing a critical and essential service to the bush, operating as the sole carrier on more than 30 routes, and in order to ensure that these routes remain viable it, like everyone else, must respond to the record oil prices."
Mr Lodge said even in the face of record fuel costs, average ticket prices inclusive of the fuel levy remained lower than they were when the carrier started because of "tremendous efficiency gains" over the six years Rex had been operating.
The fuel surcharge increase was applicable to Rex subsidiary airline Air Link, it said.
$40 per sector, the Australian travelling public must be amongst the most gullible in the world!