Air fares to rise after Katrina creates a jet-fuel shortage

British Airways and Virgin Atlantic are set to increase the fuel surcharges on their flights as a jet fuel shortage in the US is threatening to ground flights.

The situation in the wake of Hurricane Katrina is so bad that some airlines – such as Continental – have taken to carrying extra fuel on board because of fears that they will not be able to refuel. Analysts are also predicting the crisis will force more airlines into bankruptcy, including Delta, America’s third-largest carrier.
Both BA and Virgin say they have enough jet fuel to keep their transatlantic operations flying but are monitoring the situation closely. They are also reviewing their fuel surcharges –