A spokesman for the Deutsche Lufthansa AG said that the company had no plans to raise its fuel surcharges or call off flights in order to deal with high prices of oil, touching an all time high level of above $135 a barrel in the international market.

The spokesman said, "We are well prepared for higher oil prices", and added that the airline had hedged its fuel requirements by about 85 per cent.

American Airlines announced yesterday that it would begin charging a fee of $15 for the first checked bag, cut domestic services and cut jobs to deal with the high fuel costs.

Previously today, the global oil prices reached beyond $135 per barrel for the first time on runaway concerns about uncontrolled demand going beyond supply.

The record high levels of oil prices are affecting fuel costs of airline companies, and the German carrier earlier said that it saw its fuel costs reaching around 5.26 billion euros that year, taking up an average price of oil of $111 a barrel and the rate of euro at $1.58.

However, the German carrier's fuel costs will reach 5.71 billion euros if oil prices average $134 a barrel during the year. Passengers of Lufthansa can expect some flights being cut from the regular schedule by the carrier, but as per present conditions, the airlines is in no mood to increase fuel surcharge over tickets that it is already offering to its passengers.