Airlines consider lifting fuel surcharges - again

A new round of airline price rises appears likely, with Qantas saying it is considering imposing higher fuel surcharges on its tickets.

Air New Zealand chief financial officer Rob McDonald said his airline was "naturally concerned" at the continuing high fuel prices and could not rule out further fuel surcharge increases.

"We are monitoring the situation on a daily basis," he said.

Qantas chief financial officer Peter Gregg said yesterday that the Australian carrier was considering a new surcharge to cover a A$600 million ($667 million) shortfall caused by rising fuel prices.

"We are cautiously considering a fifth surcharge to recover some of this," he said.

Qantas passengers currently pay a A$20 a sector fuel surcharge. Jetstar and Virgin Blue charge A$19 a sector.

Air NZ last raised its fuel surcharge in April, when regional "Link" fares went up by $5 for a one-way journey and fares on domestic main trunk jet routes by $10.

The surcharge on transtasman and Pacific Islands flights increased by $12 a sector to $42. Long-haul flights were also hit by a $12 increase, with a $52 surcharge now levied on each sector.

Fuel represents about 20 per cent of Air NZ's operating costs.