Singapore Airlines Ltd., the world's second-largest carrier by market value, said soaring jet fuel prices may reduce global demand for air travel.

"Higher fuel prices may at some point slow down the global economy, which in turn will affect demand for air transportation," the company's Chief Executive Officer Chew Choon Seng said in Sydney on Oct. 26. Singapore Airlines raised fuel surcharges on Oct. 18 by as much as US$6 because of higher oil prices.

The carrier plans to cut its fuel bill by using more efficient aircraft such as the Airbus SAS A380, which made its first commercial flight between Singapore and Sydney on Oct. 25. Fuel is the biggest expense for Asian carriers.

The price of jet fuel has gained 38 percent in Singapore trading this year, and closed at a record US$100.25 a barrel on Oct. 25, according to data compiled by Bloomberg. Airlines around the world are choosing aircraft with greater fuel efficiency. These modern planes use carbon fiber parts that are lighter than traditional aluminum components.

The A380's weight-saving composite materials help it burn 12 percent less fuel than its competitor, according to Airbus's Web site. The A380 will be the first long-haul aircraft to consume less than three liters of fuel per passenger over a 100 kilometer route.