The airline Rockhopper says ticket prices may have to be increased because of rising oil prices and the high cost of living in the islands.

Noel Hayes, the company's chief executive, says these and other costs are cutting into margins.

Mr Hayes says it is unfortunate, but increases in passenger taxes by both Guernsey and Jersey airports have to be passed on to the consumer.

He said: "Added to this as regular as clockwork on 1 January every year the cost of flying into Guernsey Airport goes up by the rate of local inflation, which is more than the rate of UK inflation.

"That's not good news for the travelling public, but unfortunately it is outside the control of all airlines."