Malaysia Airlines will absorb rising fuel costs caused by higher oil prices but the government is considering lowering airport parking fees and other measures to ease its burden, a report said Sunday.

Transport Minister Chan Kong Choy was quoted by Bernama news agency as saying that the flag carrier would not raise a fuel surcharge imposed in June despite record oil prices of US$46.58 a barrel last week.

"It will absorb the recent increase," Chan said.

"We will look into ways to help the national carrier, like reducing the parking fees (for its aircraft)" at the Kuala Lumpur International Airport, he said.

Malaysia Airlines in June imposed an extra RM50 fuel surcharge on fares for passengers travelling to Europe, Australia, New Zealand, North and South America, the Middle East and Africa, and RM15 for regional flights.

The carrier hopes to improve its performance this fiscal year after a 37 percent year-on-year surge in net profit to RM461.14 million for the year to March 2004, but this could be thwarted by rising oil prices.