Australian airline to increase airfares

Friday, June 13, 2008

A Virgin Blue Boeing 737
Image: User:Boticario.

Australian airline Virgin Blue plans to increase its fares, making for an average additional A$5-10 charge to most airfares. The airline will also cease its Sydney to Prosperine route in July 2008 and Melbourne to Darwin route in August 2008 in order to cut costs due to the airline's rising fuel bill.

Virgin Blue's fuel costs have risen above A$500 million, which is up 21 per cent as compared to the last financial year. The cut backs will also see 4 of the airline's aircraft removed from its fleet and an immediate wage freeze to all management staff.

Virgin Blue CEO Brett Godfrey said that the move was part of a A$50 million package of cost savings and capacity cuts.