Virgin Blue has followed on the heels of Qantas and Air New Zealand in raising fuel surcharges by as much as AU$100 for a return international trip and fares by up to AU$10 for a one-way domestic flight.
The airline blamed a rise in jet fuel prices for the second increase in surcharges in less than a month.
Qantas last week raised fuel surcharges on its international flights for the second time in little more than a month, while Air New Zealand increased trans-Tasman fares by an average of 8 percent.
Passengers will pay an extra AU$165 for a one-way ticket on V Australia flights between Australia and Los Angeles, up from AU$115 previously, while those flying to Europe via Abu Dhabi will pay AU$240 each way, up from AU$220.
International short-haul fares on Pacific Blue and Polynesian Blue flights will increase by up to AU$20 for a one-way ticket. Domestic fares will rise by between AU$6 and AU$10 each way.
Shares in Virgin Blue were unchanged at 34 cents in early trading today.
Qantas and Virgin Blue shares have declined steadily over the past two months as turmoil in the Middle East and North Africa sparked a surge in oil prices.
Singapore jet fuel prices rose to more than US$133 a barrel last week, the highest since August 2008.
Qantas shares fell 5 cents to an eight-month low of AU$2.22 today, taking their fall since early November to 23 percent.
Virgin Blue's chief executive, John Borghetti, said the latest increase in surcharges and fares would go some way to address the latest rises in fuel prices but would not recover the full cost.
"We will continue to closely monitor fuel prices and consider increases or decreases to our fuel surcharges and fares in line with changes in market conditions," he said.
The latest surcharge and fare increases will apply to tickets sold from March 21.
Jet fuel prices have risen by 10 per cent to more than US$130 a barrel since Virgin's previous increase in surcharges and baggage charges on February 17.
However, Virgin's ability to offset rising jet fuel prices using surcharges is more limited than Qantas's because its leisure travellers tend to be more sensitive to increases in fares or taxes.
The airline blamed a rise in jet fuel prices for the second increase in surcharges in less than a month.
Qantas last week raised fuel surcharges on its international flights for the second time in little more than a month, while Air New Zealand increased trans-Tasman fares by an average of 8 percent.
Passengers will pay an extra AU$165 for a one-way ticket on V Australia flights between Australia and Los Angeles, up from AU$115 previously, while those flying to Europe via Abu Dhabi will pay AU$240 each way, up from AU$220.
International short-haul fares on Pacific Blue and Polynesian Blue flights will increase by up to AU$20 for a one-way ticket. Domestic fares will rise by between AU$6 and AU$10 each way.
Shares in Virgin Blue were unchanged at 34 cents in early trading today.
Qantas and Virgin Blue shares have declined steadily over the past two months as turmoil in the Middle East and North Africa sparked a surge in oil prices.
Singapore jet fuel prices rose to more than US$133 a barrel last week, the highest since August 2008.
Qantas shares fell 5 cents to an eight-month low of AU$2.22 today, taking their fall since early November to 23 percent.
Virgin Blue's chief executive, John Borghetti, said the latest increase in surcharges and fares would go some way to address the latest rises in fuel prices but would not recover the full cost.
"We will continue to closely monitor fuel prices and consider increases or decreases to our fuel surcharges and fares in line with changes in market conditions," he said.
The latest surcharge and fare increases will apply to tickets sold from March 21.
Jet fuel prices have risen by 10 per cent to more than US$130 a barrel since Virgin's previous increase in surcharges and baggage charges on February 17.
However, Virgin's ability to offset rising jet fuel prices using surcharges is more limited than Qantas's because its leisure travellers tend to be more sensitive to increases in fares or taxes.
