Maputo - Mozambique's national airline, Linhas Aéreas de Moçambique (LAM), announced Wednesday it would increase airfares by 10 per cent and reduce its number of flights as a result of high oil prices.

In a statement posted on its website, LAM announced it would reduce the number of flights by 13 per cent, increase fares by 10 per cent, increase fuel tax on regional flights by 5 per cent and replace its fleet with more fuel efficient jetliners.

High oil prices translate into higher prices for jet fuel. LAM said the company's oil bill had soared to just under one million dollars a month, half of total operating costs.

Fuel costs had risen by 39 per cent over the past four months, compared to 43 per cent for the 12 months between January 2007 and January 2008, the company said.

Although Mozambique does have a second airline serving domestic routes, LAM is the country's only international carrier. (dpa)