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Virgin Blue To Increase Fuel Surcharge
Virgin Blue has announced it will reluctantly increase its fuel surcharge as a result of record high oil prices.
The surcharge on Virgin Blue domestic flights will increase from $10 to $19 per sector, while the surcharge on flights operated by Virgin Blue’s international carrier Pacific Blue will increase from $20 to $35 per sector.
Virgin Blue Chief Executive Officer Brett Godfrey said “We will continue to review our position and while we are loathe to increase the cost of air travel even by a relatively small amount, like all airlines around the world we are currently faced with dramatic increases in costs due to the record price of jet fuel.”
“Since our last across the board fuel surcharge in August, 2004, the price of fuel has risen a further 46 percent,” he said.
“If fuel prices stay at current levels, Virgin Blue’s fuel bill this year will be $165 million more than in 2004-2005.”
The new surcharges will come into effect after midnight on Monday 11 April 2005.