Oil Shock

SriLankan Airlines has sought Civil Aviation Authority approval to raise outbound airfares by US$ 5 per sector.
The airline has sought the increase, as fuel prices have shot up by 10 percent to 12 percent over the past three-months due to Middle East tension.rn

rnldblquote This is not a decision we took on our own. We met representatives from all airlines before taking a decision to raise airfares,
dblquote SriLankan Airlines CEO, Peter Hill said in an interview.rn

rnOther international carriers have also submitted similar requests to their respective governments to allow a fuel surcharge.rn

rnSriLankan has factored a rise in fuel prices to its costs. But Hill says, costs have shot up and continue to head upwards. rn

rnAirfares are also likely to go up further as worldwide insurers have hinted on raising insurance premiums in the event of a Gulf war.rn

rnFollowing the July 24 attack and 9/11, insurance premiums for the national carrier have yet to come down by substantial levels.rn