"You can't go from 50 cents a gallon to $4 a gallon, which is what many of these carriers are paying, and not expect to see it in the price of the ticket ... but I'd say the days of cheap fares are probably behind us," the president and chief executive of World Star Aviation in San Francisco, John Flynn, told ABC Radio.

His comments came just hours after Qantas announced that is would lift its international air fares by around four per cent and domestic fares by about three per cent for tickets issued in Australia from June 4.

A flight to London on Qantas will now cost passenger an extra $72. Ticket prices between Sydney and Melbourne will rise by around $3.

The increases follow hikes of about three per cent for international fares and 3.5 per cent for domestic fares earlier this month.

Qantas chief executive Geoff Dixon said the increases were unavoidable given the continuing high costs of oil.

"Oil and jet fuel prices continue to break records, with West Texas Intermediate spot crude oil passing $US134 a barrel overnight and Singapore Jet Fuel today trading at nearly $US166 a barrel," he said.

Meanwhile, the world's largest commercial carrier, American Airlines has announced it will charge passengers $US15 to check accompanying bags onto flights, as well as lay off staff and retire older planes in a response to the weakening US economy and rising fuel costs

John Flynn said he believed it would be difficult for the global airline industry to turn a profit in 2008 – Australian airlines included.

"Australia, New Zealand are a long way away from the rest of the world and therefore, you know, they have a disproportionately large fuel bill on their international carriers," Mr Flynn said.

"Because (Australian carriers are) not in the US they'll probably break even domestically. Internationally I think it's much more of a challenge for them."

by Staff Writers

SOURCE | News.com.au