Over a barrel

Air fares are being adversely affected by soaring fuel surcharges, but there are still significant savings for buyers who can lock in deals with preferred carriers

First, the good news. Air fare rises for 2006 are tipped to be relatively modest. American Express-owned consultancy eClipse Advisors forecasts an increase of 2-3 per cent on short-haul routes and 5 per cent on long-haul. Other industry experts believe short-haul fares may not go up at all, such is the continuing pressure on price from low-cost carriers (LCCs).

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