Iberia hikes ticket prices as oil crisis continues

13th October 2004, Comments 0 comments

13 October 2004, SAN JOSE - The Spanish national airline Iberia is to introduce special fees of between EUR 5 and 15 per ticket to meet the rising cost of oil, chief executive Angel Mullor said Wednesday.

13 October 2004

SAN JOSE - The Spanish national airline Iberia is to introduce special fees of between EUR 5 and 15 per ticket to meet the rising cost of oil, chief executive Angel Mullor said Wednesday.

"The maximum level that we can sustain without special taxes was 50 dollars a barrel," Mullor told correspondents travelling with him on a visit organised by the carrier to Central America.

But he stressed that the fees would be eliminated once oil prices returned to "reasonable" price levels.

World oil prices mounted a fresh rally earlier Wednesday after temporarily surging above USD 54 Tuesday on a market nervous about supplies.

The price of reference light sweet crude for delivery in November rose 28 cents to USD 52.79 a barrel in electronic trading on the New York Mercantile Exchange.

New York's main oil contract pierced USD 54 for the first time Tuesday, boosted by strikes in major producers Nigeria and Norway, before sliding as investors locked away fat profits.

It had touched an unprecedented USD 54.45 - a record in the contract's 21-year history - before closing at USD 52.51.

British Airways, KLM, Air France, Lufthansa, TAP-Portugal and Swiss have already increased ticket prices in response to the spike in oil rates.

[Copyright EFE with Expatica]

Subject: Spanish news

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