Australia's top airline Qantas has raised airfares to offset rising fuel costs that is threatening airline profits.

Qantas said it will raise fares by up to A$10 per sector in domestic and regional fares for tickets issued on or after March 31 and Tasman fares will go up by as much as 8 percent. The fare increases come on top of two increases in fuel surcharge.

Qantas Chief Executive Officer Alan Joyce said in a statement the current situation presented a significant threat to airlines in Australia and around the world.

Since international fuel surcharges and domestic fares increased last month, jet fuel prices have increased by a further 15 per cent, to more than US$134 per barrel today.

(Reporting by Narayanan Somasundaram)