Qantas announced today it will increase international fuel surcharges for the third time this year. Domestic, regional and trans-Tasman fares will also increase by five percent and a surcharge will be added to domestic and Tasman Qantas Frequent Flyer Classic Award redemption seats. The changes will apply to tickets issued on or after 28 April 2011.
Qantas Chief Executive Officer, Alan Joyce said; “After fuel hedging, fuel surcharges and fare increases, Qantas will still not fully recover these higher fuel costs. The revised fuel surcharges cover less than half of the increase in fuel cost for the Qantas International business for next year. With fuel prices at record highs, even if the fuel price begins to decrease it will be some time before we will be able to decrease the fuel surcharge.”
Joyce said the Qantas Group will spend AU$2 billion (US$2.1 billion) on fuel in the second half of this financial year. This is approximately a AU$300 million increase to the fuel bill when compared to the first half.
Qantas increased domestic airfares and international fuel surcharges in February and March this year in response to rising fuel prices. The latest hikes will see the surcharge on international routes increased by as much as AU$100, with charges ranging from AU$145 per sector on routes to Asia, Pacific and Hawaii, to as much as AU$290 on flights to the UK and Europe.