Fuel Costs

SYDNEY - Australia's national airline Qantas said Monday it will increase air fares from May 9 to counter the impact of rising fuel costs and protect its profitability.

International fares will rise by about 3.0 percent and domestic fares will increase by about 3.5 percent, the airline said, adding that its budget offshoot Jetstar was reviewing its own fare levels.

But chief executive Geoff Dixon said that while higher fuel prices remained a concern, the group's fundamentals remain strong with its flying businesses well positioned in their markets.

"We remain confident of meeting our guidance for a 2007/08 result of a least 40 percent higher than the 2006/07 reported profit before tax," Dixon said.

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