Air Canada has added fuel surcharges on to fares for domestic flights and US routes to help cope with crude prices that rose above $126 a barrel on Friday, the carrier said.

For North American flights, the surcharge is CAD$20, CAD$40 or CAD$60 depending on the distance flown, effective immediately, Air Canada spokeswoman Angela Mah said.

That is in addition to surcharges already in place for flights overseas, Mah said.

"What it boils down to is that raising fares is not sufficient to offset the total cost of fuel. There is no single fix, i.e. raising fares, to this unprecedented situation, which is affecting all sectors of the economy," she said.

On Thursday, Air Canada said first-quarter fuel costs increased by CAD$130 million (USD$129 million) from the same period a year earlier.

The trans-border surcharge matches those instituted recently by US carriers, Mah said.

It is not known if the extra cost will discourage some travelers from flying Air Canada, which has enjoyed a strong domestic market, in contrast to US carriers, Research Capital analyst Jacques Kavafian said.

The impact could be felt immediately, Kavafian said.

"We'll see how it goes, but if the market holds up, it's good for them," he said.

Kavafian pointed out that Air Canada's main domestic competitor, WestJet Airlines, has yet to institute a fuel surcharge.

WestJet executives said last week they were considering a surcharge, but did not specify an amount.

Oil settled at a record USD$125.96 a barrel on Friday, up USD$2.27, after jumping above USD$126. That is more than twice the price of a year ago.