Aer Lingus Introduces First Fuel Surcharge

Ireland's Aer Lingus is introducing fuel surcharges on its long haul flights to and from the United States and the Middle East because of rising international oil prices, the flag carrier said on Friday.

It is the first time Aer Lingus has imposed a fuel surcharge on any of its routes. The extra charge of EUR35 (USD$43) each way will apply to all tickets booked on the routes from May 15.

"Since 2005 the cost of fuel per passenger on long haul routes has increased by over 86 percent while at the same time average fares have fallen," Chief Executive Dermot Mannion said in a statement.

"In light of the continuing increases in fuel, Aer Lingus can no longer fully absorb these costs."

Aer Lingus, which is expected to be listed on the stock market later this year, said it was committed to its low fares strategy on short haul routes in Europe and had not applied the surcharge on these routes.

The airline is hedged in 2006 for 51 percent of its estimated fuel requirements.

Its annual results for 2005 showed fuel costs increased by EUR33.1 million (USD$40.8 million) in the year while fares for transatlantic flights decreased by almost 5 percent over the same period.

British Airways raised its fuel surcharges for the first time in seven months earlier this week after concerns about Iran's nuclear program sent crude prices to record highs.

(Reuters)