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Airlines to raise ticket costs in response to fuel price surge

Brian Pearce, chief economist of the International Air Transport Association (IATA) has said that carriers around the world will have to raise their ticket prices by around 5% to compensate for the massive 50% surge in fuel prices over the last 12 months, Gulf News has reported. "With no sign of a significant decline in oil prices that are staying stubbornly above $100 a barrel, airlines are fighting to stay profitable and have pushed up ticket prices in order to recoup costs. They have had no choice but to hike fares," Pearce told the daily.