Wirraway
10th Aug 2004, 04:57
AAP
Virgin Blue watches oil prices
August 10, 2004 - 1:59PM
Virgin Blue is watching the oil market closely but had not made any decision to alter the fuel surcharge on its airfares after oil prices reached new highs.
"We are watching it closely but there has been no decision on the existing fuel surcharge," a spokesman said.
"We are monitoring it very closely to see if it's a sustained increase or a temporary situation."
Virgin Blue imposed a $6 per sector charge in May.
Its 25 per cent owner Virgin Atlantic has lifted its fuel surcharge on tickets sold in the UK to STG6, from STG2.50.
The airline reacted after British Airways, a major shareholders in Qantas Airways Ltd, raised its fuel surcharge on long haul flights by a similar amount for single flights.
BA's short haul charge of STG2.50 is unchanged.
Qantas imposed a $6 single journey domestic airfare fuel surcharge in May.
It has said that the charge would be dropped when fuel prices fall to more sustainable levels.
The charge also applies to the fares of its budget airline Jetstar.
Fuel costs account for up to 25 per cent of most airline costs.
Airlines around the world began implementing fuel surcharges on airfares from May in response to a rise in world oil prices toward $US40 per barrel.
BA said that fuel prices had risen by 47 per cent over the past year and that its costs were expected to rise to 225 million pounds this year.
Overnight, NYMEX September crude oil futures hit $US44.84 a barrel, after reaching an intraday high of $US44.98 - its highest level since it started trading oil futures 21 years ago.
Virgin Blue and Qantas shares were both up three cents, at $1.73 and $3.36 respectively, at 1340 AEST.
© 2004 AAP
==========================================
Virgin Blue watches oil prices
August 10, 2004 - 1:59PM
Virgin Blue is watching the oil market closely but had not made any decision to alter the fuel surcharge on its airfares after oil prices reached new highs.
"We are watching it closely but there has been no decision on the existing fuel surcharge," a spokesman said.
"We are monitoring it very closely to see if it's a sustained increase or a temporary situation."
Virgin Blue imposed a $6 per sector charge in May.
Its 25 per cent owner Virgin Atlantic has lifted its fuel surcharge on tickets sold in the UK to STG6, from STG2.50.
The airline reacted after British Airways, a major shareholders in Qantas Airways Ltd, raised its fuel surcharge on long haul flights by a similar amount for single flights.
BA's short haul charge of STG2.50 is unchanged.
Qantas imposed a $6 single journey domestic airfare fuel surcharge in May.
It has said that the charge would be dropped when fuel prices fall to more sustainable levels.
The charge also applies to the fares of its budget airline Jetstar.
Fuel costs account for up to 25 per cent of most airline costs.
Airlines around the world began implementing fuel surcharges on airfares from May in response to a rise in world oil prices toward $US40 per barrel.
BA said that fuel prices had risen by 47 per cent over the past year and that its costs were expected to rise to 225 million pounds this year.
Overnight, NYMEX September crude oil futures hit $US44.84 a barrel, after reaching an intraday high of $US44.98 - its highest level since it started trading oil futures 21 years ago.
Virgin Blue and Qantas shares were both up three cents, at $1.73 and $3.36 respectively, at 1340 AEST.
© 2004 AAP
==========================================