Domestic airlines set to raise fuel surcharges

"This is inevitable in view of increasing crude oil prices which are expected to hit another record high of US$100 per barrel. But if later the crude prices go down, the fuel surcharge will be lowered accordingly," he said.

He said the impact of fuel prices on production costs varied, depending on the types of airplanes. "For B737-400s and B737-300s it is still ranging from 35 to 40 percent, for B737-900s it is above 30 percent and for B737-200s it exceeds 40 percent," he said.

Despite the increase in fuel surcharge, Lion Air`s basic flight tariffs classified into nine sub-classes remained unchanged, he said.

"The impact is expected to be noticeable early in November. Will demand increase or vice versa?" he said.