Qantas ready to raise fuel surcharge on tickets Prices flying high
DIFFICULT TIMES: Qantas has made the decision to lift ticket prices on international routes due to a number of factors INTERNATIONAL air ticket prices will rise again from mid-March, when national carrier Qantas increases fuel surcharges in response to climbing oil and jet fuel prices.
The surcharge will rise by between $ 30 and $ 45 depending upon the route, and will apply to tickets issued on or after March 17.
The new fuel surcharges – in Australian dollars, one way, flying out of Australia – will rise to $ 190 from $ 145 for UK and European routes; to $ 150 from $ 115 on routes to mainland USA, Canada, South America, South Africa and India; and to $ 105 from $ 75 on routes to Asia, the Pacific and Honolulu. Qantas chief executive Alan Joyce said oil and fuel prices were an increasing concern for the aviation sector.
‘‘ Due to a range of factors, including political instability in the Middle East, prices have moved upward sharply in recent months,’’ Mr Joyce said yesterday.
‘‘ This prompted, last month, our first increase in international fuel surcharges since January 2008, as well as modest increases in domestic, regional and Tasman fares of up to 5 per cent.
‘‘ Since then, jet fuel prices have increased by a further 12 per cent, to more than $ US131 per barrel today.’’
Average prices for Brent and Singapore jet fuel were at their highest level since 2008.
Mr Joyce said the higher surcharges would not fully recover the latest oil and fuel price rises.
He said fuel costs for the Qantas group in the second half of this financial year were now expected to rise to $ 2 billion.
The airline’s international surcharges and domestic, regional and Tasman fares remained under review, and further increases would be considered if necessary.
Shares in Qantas were higher at $ 2.34 yesterday.