Qantas ready to raise fuel sur­charge on tick­ets Prices fly­ing high

Townsville Bulletin - - Investor -

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.

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