Dubai-based Emirates airline may raise fares to offset the impact of higher oil prices, a report said.

The airline also planned to cut costs by at least $100 million, the company's president Tim Clark told Dow Jones in an interview in Berlin.

Oil prices hovered around $106 a barrel yesterday on the New York Mercantile Exchange.

"We'll have to raise fares and strip costs to compensate," he said. He did not elaborate which fares the airline might raise and by how much.

He said fuel accounted for 30 per cent of Emirates' costs, up from about 14 per cent in 2004.