Qantas says it won't increase fuel levy

Australian national airline Qantas Airways says it won't increase its fuel levy despite soaring fuel costs contributing to a 10 per cent fall in first half net profit.

Qantas chief executive officer Geoff Dixon told news agencies he didn't think the fuel levy - which the national carrier first introduced in mid-2004 - would rise.

"No, I don't think so at all," Mr Dixon told Nine's Business Sunday program.

Airlines around the world, including Qantas, began implementing fuel surcharges on airfares in May 2004 to help offset rising costs, with the Aussie national carrier since raising its fuel levy three times.

Last week Qantas said soaring fuel costs and redundancy payouts had cut its first half net profit by 9.6 per cent to US$352.6 million, with its annual profit now set to come in under last year's result.

The company is in the midst of a major restructure as it contemplates moving its flight maintenance operations overseas to further cut costs.