Unit 1: BA increases long haul fares

.....reports sky

http://news.sky.com/skynews/Home/Business/British-Airways-Blames-Higher-Oil-Price-For-10-Increase-In-Long-Haul-Fuel-Surcharge/Article/201012215854078?f=rss

a) Using a S&D diagram, why they have increased the price
b) Comment on the extent to which this will decrease demand for these flights