Some SAR air travellers face slight fare increases after two airlines yesterday announced surcharges would be added to cover raised insurance premiums as war fears mounted. Singapore Airlines is to charge about $10 more for each trip from today. Dutch carrier KLM will add about $40 to its ticket prices starting tomorrow. American, Continental and Philippine Airlines said they had no plans to impose a surcharge. Other airlines, including Northwest, Virgin Air, Dragonair, Cathay Pacific and China Airlines, were yet to decide. Cathay Pacific managing director Philip Chan Nan-lok said: 'We need to wait until it is clear what influence there will be before we can make further decisions. Our first priority now is to keep flights on schedule.' Meanwhile, travel agencies are also considering raising fares for package tours. Susanna Lau Mei-sze, general manager of Hong Thai Travel, said holidaymakers might have to cover package deal insurance costs if the increase was considerable. She said they would wait and see before deciding if it was necessary to charge tourists more or to carry the costs themselves. Executive Council member Raymond Ch'ien Kuo-fung said he was worried that the new aviation insurance deals would continue to push up the price of air tickets. He said demand might drop if air ticket prices were driven up, but added the impact of a fall in demand on prices was yet to be ascertained. But Dr Ch'ien said he was glad that Cathay Pacific and Dragonair had struck deals with an insurance company on third-party war-risk coverage. He said the move was encouraging as it meant the Government would not have to 'bail out the airline companies'.