PX increases fares by K10

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The National- Thursday, February 10, 2011

 AIR Niugini has increased its airfares by K10, which will come into effect tomorrow.

The airline said in a statement yesterday that the increase was due to an increase in its fuel surcharge for both the domestic and international sectors.

The only exception would be the Rabaul-Lihir sector.

Air Niugini chief executive officer Wasantha Kumarasiri said the increase was due to continuous escalation of crude oil prices. 

“Fuel surcharge for sectors in international destination POM-Brisbane, POM-Sydney and POM-Singapore will be at US$170 (K446) per sector, an increase of US$20 (K52),” the Air Niugini statement said.

“The POM-Cairns fuel surcharge will increase by US$10 (K26) and the new surcharge will be US$75 (K197).”

Kumarasiri said the cost of fuel had risen steadily and, since the last fuel surcharge for the international sectors, Air Niugini had absorbed about K1.5 million per month for fuel while an estimated K800,000 per month was spent on the domestic sectors. 

“The last fuel surcharge for the domestic sector was made in June last year,” Kumarasiri said.

“Air Niugini has absorbed most of these increases in the past. 

“However, with the steady rise of the cost of fuel, Air Niugini cannot continue to absorb the substantially higher costs.”

l Kumarasiri said: “Air Niugini is left with no alternatives but to increase its fuel surcharge to partially recover some of the costs.”

The international fuel price had increased from an average K1.62 per litre to K1.98 per litre. Fuel price movement in the domestic sector had increased by 13.6% where it went from K2.12 to K2.41 per litre.

Kumarasiri also assured customers that should the crude oil prices decrease, Air Niugini would re-adjust its fuel surcharges accordingly.