Qantas will increase its fares for all Qantas and QantasLink routes from May 9 in response to record fuel prices.
Domestic fares will increase 3.5 per cent while international fares will increase three per cent.
Jetstar is also reviewing its fare levels, and hikes to Qatnas fares outside Australia have been slated.
Meanwhile, Qantas CEO Geoff Dixon has said that he expects more airlines to fall by the wayside as the economic slowdown impacts the industry.
In an interview with The Australian newspaper, Dixon said economic problems in the US and high fuel prices could see some airlines fold in coming years.
“You’re going to have to be more efficient, prices would have to go up and, if that hit peak demand, it would mean that there wold be quite a few of the less robust carriers probably disappearing,” he told the newspaper.