Sharp Airlines will charge travellers to King Island and Flinders Island a 5% fuel levy from Monday as global oil prices surge.
The temporary charge follows what the regional carrier describes as a “significant” rise in aviation fuel costs driven by instability in the Middle East.
Existing bookings will not be affected, but anyone purchasing tickets from March 16 will pay the additional charge.
“The levy is necessary due to the recent rise in global oil prices, largely driven by instability in the Middle East, which has significantly increased aviation fuel costs,” the airline said in a statement.
Sharp Airlines is the only carrier providing regular passenger services to Flinders Island from both Launceston and Melbourne.
The move mirrors actions by airlines worldwide, with carriers scrambling to respond to jet fuel prices that have nearly doubled since late February.
Qantas has raised international fares by an average of 5%, while Cathay Pacific announced this week it would double fuel surcharges on most routes from March 18.
Air India is implementing surcharge increases in two stages, while Air France–KLM lifted long-haul fares by an average of $57 per flight from March 11.
The International Air Transport Association (IATA) has warned ticket prices could rise by as much as 9% across the industry.
Fuel typically accounts for about a quarter of airline operating costs.
Aviation fuel reached $173.91 per barrel on March 9, nearly double January levels, according to industry data.
The conflict in the Middle East has effectively closed the Strait of Hormuz, which normally carries about one-fifth of the world’s oil supply.
Sharp Airlines said it “remains committed to maintaining reliable air services to both islands” and thanked the community for its understanding.
The carrier has not specified when the temporary levy might be removed, saying only that it will remain in place “until further notice”.
