Consumer advocate George Murphy says many Canadians are finding it too expensive to fly. (CBC)

Air Canada's move last week to add a fuel surcharge to domestic flights could prove disastrous for the country's tourism industry, said consumer advocate George Murphy.

Murphy, who heads up Newfoundland and Labrador's Consumer Group for Fair Gas Prices, said the added cost will put the price of an airline ticket out of reach for many Canadians.

The price increases, imposed on Friday, would add $120 a round-trip for flights of more than 1,601.6 kilometres, each way. Smaller surcharges would be slapped on tickets for shorter trips as the country's largest airline tries to recoup soaring costs for jet fuel.

Air Canada said the new surcharges won't allow it to recoup the full added cost of fuel. The airline's fuel bill increased by $130 million in the first quarter from the same period a year earlier. That number is expected to increase by more than $220 million in the coming quarter.

Air Canada applied the surcharge to cross-border flights to the United States on Thursday, matching similar moves by the big American carriers.

The new surcharges are $40 return for flights of less than 480 kilometres, $80 return on flights between 480 kilometres and 1,600 kilometres and $120 for longer flights.

Murphy thinks the timing is not great, with the announcement coming just before the start of the tourist season.

Murphy says it's time to increase price competition by opening up Canadian skies to more carriers.

Westjet and Porter Airlines have said they're considering adding fuel surcharges onto their ticket prices.

St. John's International Airport authority CEO Keith Collins said the surcharge was not unexpected with the price of oil soaring in recent weeks.

He says he doesn't think the surcharge will have a big impact on travel in the short term.

With files from the Canada Press