Several low-cost airlines are beginning to feel the impact of rising oil prices and are now considering increasing fares.

Low- cost airline operators will meet on Wednesday to decide whether they should raise ticket fares or the surcharge on fuel.

Thassapol Baleveldt, chairman of Air Asia, said the global oil situation has had a drastic effect on airlines while One-Two-Go Airlines' Chief Executive, Udom Tantiprasongchai, said increased prices of fuel have resulted in airline operators having to dig deeper into their pockets. In the first quarter, fuel costs rose an average of 10 per cent, he said.

He said One-Two-Go operational costs in the first quarter increased by 30 per cent, which already led to a fare hike. But because of soaring fuel prices, the airline now has resorted to a new marketing strategy, which is to join hands with hotel operators in coming up with special deals.

Thai Airways, the national carrier, also plans to hike fares to reflect current oil prices.