Virgin Atlantic ups fuel charge

Fuel accounts for about 25% of Virgin's operating costs

Virgin Atlantic is raising its fuel surcharges on tickets sold in the UK to offset rocketing fuel prices.

The airline said it would increase its fuel levy to £30 ($55.36) per flight, a rise of £6, after oil prices reached more than $70 a barrel last week.

This latest increase will take place from Wednesday 7 September, it said.

In May, Virgin shrugged off higher fuel costs to reveal a sharp increase in profits to £68m for the year, its highest since 1999.

"The decision has been taken in light of the recent increases in the price of oil which - exacerbated by Hurricane Katrina - reached a new high of over $70 a barrel last week," Virgin said in a statement.

In June this year, the airline raised its fuel levy by £8 per flight when oil was hovering around the $60 per barrel mark.

Analysts expect rival airlines, including BA, to follow Virgin's move.

Qantas already increased its surcharges two weeks ago.