Fuel costs ‘no drama’

QANTAS says it is ‘well positioned’ to substantially recover higher fuel costs with its capacity discipline and dual brand strategy.

In a speech to CLSA’s Hong Kong investors forum, Qantas detailed its approach to rising fuel prices - with costs for FY19 expected to be around $3.92 billion, up from 3.23b this year.

But regardless of the fuel or currency fluctuations, it said its strategy would see it come out on top: “Our strong Group operating margin ... gives us confidence that we will substantially recover the higher fuel costs.”