What goes up but doesn’t come down? No, not hydrogen or helium balloons, but anything that is related to fuel. SIA has announced an increase in fuel surcharges – just barely 3 months after its last increase in December 2007. Increasing surcharges is an addictive act – once you get past the first one, the rest comes easier.

And this is one thing that no budget airlines can stop because… it is really a different market.

SINGAPORE Airlines (SIA) will increase its fuel surcharge for all flights from March 26 due to escalating jet fuel prices recently.

The increase in surcharges of between US$4 (S$5.57) and US$7 will apply to SIA and SilkAir flights.

On regional routes, the surcharge will go up from US$26 to US$30 per sector, for flights between Singapore and Asean countries.

For flights between Singapore and gateways in the United States and Canada on a single-sector basis, it will be up from US$123 to US$130 per sector, and on all other flights, it will be from US$75 to US$80.

‘The new surcharge is subject to official approval in some markets, and some local variations may apply where regulatory approvals dictate,’ said SIA in a statement on Thursday.

‘The adjustments will offer only partial relief of higher operating costs arising from increases in the price of jet fuel.’

The airline said it will continue to monitor the price of jet fuel and keep the application of the fuel surcharge under active review.

The airline last raised its fuel surcharge in December

Article obtained from straitstimes.com on 20th March 2008



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