SYDNEY: Australian flag-carrier Qantas Airways reported yesterday a 28% rise in first-half profit to a record high as cost cuts and hedging offset higher jet fuel prices, but warned that fuel costs would increase in the second half and beyond.

British Airways plans to sell its A$1.12 billion (435.1 million pounds) stake in Australia's Qantas Airways in the next two days to cut debt and take advantage of future consolidation in Europe.

Europe's second-biggest airline, which has undertaken the most radical restructuring among its peers in the past three years, said the sale of the 18.25 percent stake would have no effect on the business relationship between the two carriers.

SYDNEY, Australia (AP) - Soaring oil prices will force Australian flag carrier Qantas to slap higher surcharges on airline tickets, Chief Executive Geoff Dixon said Friday.

Qantas reported record profits for the fiscal year through June of 648.8 million Australian dollars (US$469.8 million; euro 379.8 million) on Thursday, but warned that high oil prices could undermine its performance this financial year.

Tensions between Qantas and its 4000 international flight attendants have risen sharply and are bound to worsen, amid growing talk the airline could face widespread industrial action if it pushes to increase the number of overseas-based cabin crew.

VIRGIN Blue shares retreated yesterday after an unwelcome analyst's report from the carrier's own broker.

Fierce competition has broken out between Virgin Blue and new rival Jetstar.

Qantas Airways will commence non-stop flights between Los Angeles and Brisbane effective June 16, 2004, making Brisbane the most convenient gateway to the Great Barrier Reef for U.S. travelers. This is the first time any airline has offered non-stop scheduled services on this route.

TRAVELLERS at Australian airports may soon be rubbing shoulders with armed sky marshals from around the world under a new US anti-terror push.

WASHINGTON -- U.S. government officials said Thursday they believe some of the passengers boarding one of the three Air France flights from Paris to Los Angeles that were canceled due to security concerns this week might have intended to hijack it and crash land in Las Vegas.

Build it and they will come is the cliche. At the Port of Brisbane, as Nathan Scholz reports, it is more like build it and they will fly.