Qantas Responds Again To Higher Fuel Prices
Sydney, 19 April 2011
Qantas announced today it would increase international fuel surcharges as a further response to continuing rises in oil and jet fuel prices. Domestic, Regional and Tasman fares will also increase by five percent and a fuel 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 Thursday 28 April 2011.
Qantas Chief Executive Officer, Mr Alan Joyce, said further increases in oil and fuel prices were a continuing concern for the aviation industry.
"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."
Mr Joyce said the Qantas Group will spend $2 billion on fuel in the second half of this financial year. This is approximately a $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.
A fuel surcharge of $10 for Domestic and $20 for Tasman Classic Award redemptions will also be implemented.
Year to date average prices for both Brent and Singapore Jet Fuel are at their highest since FY08. The price of Singapore Jet Fuel has increased from an average of US$88 a barrel in September 2010, to US$120 a barrel in February, and is more than US$136 per barrel today.
Mr Joyce said Qantas would continue to closely monitor oil and fuel prices and respond accordingly.
"Our international surcharges and Domestic, Regional and Tasman fares remain under review, and further increases will be considered if necessary," he said.
Issued by Qantas Corporate Communication (5099)