Air France to hike fares again on oil price spike

8th August 2006, Comments 0 comments

PARIS, Aug 8, 2006 (AFP) - Air France will raise its fuel surcharge for the seventh time since 2004 because of the latest spike in oil prices, the company said Tuesday.

PARIS, Aug 8, 2006 (AFP) - Air France will raise its fuel surcharge for the seventh time since 2004 because of the latest spike in oil prices, the company said Tuesday.

The increases, to take effect on Thursday, will be one euro each way for domestic flights, two euros for medium-haul flights and seven euros for long-haul routes, the company said in a statement.

The new surcharge on long-haul flights will be EUR 58, or a total of EUR 116 for a round-trip to New York from Paris; it will be nine euros on domestic flights and EUR 14 for medium-haul journeys.

The increase "will be scrapped as soon as the price of a barrel (of oil) returns to below US $65 US for 30 consecutive days," the statement said.

Air France's announcement came as oil prices pushed towards the 80 dollar-a-barrel mark after a pipeline leak forced British major BP to shut the biggest oil field in the United States and US authorities considered releasing strategic stockpiles.

Other airlines have also increased their fuel surcharges in recent days, including the Portuguese flag-carrier TAP and Malaysia Airlines.

The International Air Transport Association representing 265 companies said the aviation sector faces losses of around US $3 billion this year because of high oil prices.

Airlines will pay some US $112 billion for kerosene this year, compared with US $91 billion in 2005, according to IATA's estimates.  

Copyright AFP

Subject: French news

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