[Kurt A]

VIRGIN BLUE AND PACIFIC BLUE TO INCREASE FARES DUE TO FUEL COSTS

Virgin Blue Airlines has announced it will reluctantly implement a price increase across its network following the continued and unprecedented increase in jet fuel prices.

The airline will increase Virgin Blue one-way Australian domestic fares between AUD$5-$10, based upon flight sector length. Pacific Blue Trans-Tasman and short haul international fares will increase between $5-$15. New Zealand domestic fares currently remain under review.

In a statement to the Australian Stock Exchange on 11 April, 2008 after jet fuel prices escalated to in excess of US$135, the airline said that continuing to absorb excessive fuel costs was an untenable position should fuel prices remain at that level. Jet fuel has since continued to increase and has now reached US$144 per barrel.

The new fares will come into effect progressively from Tuesday 6 May 2008 giving travellers time to get in and make bookings at current pricing levels.

-dj