Oil price hits record high of $90 a barrel

The price of oil has passed $90 a barrel for the first time, increasing the prospect of fuel surcharges on airfares.

The latest rise follows a vote by the Turkish parliament authorising an invasion of northern Iraq. Oil prices are now four times the rate of five years ago.

Virgin Atlantic chief executive director Steve Ridgway said: “Fuel is a huge cost. We have not made a decision on surcharges, but it is a problem.”

The price of fuel is included in airfares regardless of whether it is shown as a surcharge. IATA puts the additional cost to airlines of the price rise so far this year at $10 billion.

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