Qantas lifts fares

Townsville Bulletin - - Investor -

HIGH f uel p r i c e s have forced Qantas Air­ways Ltd to hike fares for Aus­tralian and trans-Tas­man flights for the sec­ond time since Fe­bru­ary.

Qantas says fares on do­mes­tic routes and flights to re­gional cen­tres would rise by up to $ 10 per sec­tor.

Mean­while, ticket prices would in­crease by up to eight per cent for trips to and from New Zealand.

The in­crease, an­nounced yes­ter­day, were for tick­ets is­sued on or af­ter March 31 and comes on top of a sim­i­lar move in Fe­bru­ary this year.

The na­tional flag car­rier has also twice raised fuel sur­charges for tick­ets on in­ter­na­tional flights to the US, Europe, South Africa and else­where. Qantas chief ex­ec­u­tive Alan Joyce said since the last round of in­creases in Fe­bru­ary jet fuel prices had gone up by a fur­ther 15 per cent to sit at $ US134 a bar­rel.

Mr Joyce de­scribed the sit­u­a­tion as a ‘‘ ma­jor concern’’ for the Qantas group of air­lines and rep­re­sented a sig­nif­i­cant threat to car­ri­ers around the world.

‘‘ The sit­u­a­tion to­day is very dif­fer­ent to the last fuel cri­sis, when the global econ­omy was strong,’’ Mr Joyce said.

‘‘ This time, the world is still emerg­ing from the global eco­nomic cri­sis, and de­mand is still re­cov­er­ing.’’

Fuel costs were ex­pected to reach $ 2 bil­lion in the s e c o nd hal f o f 2 0 1 0 / 1 1 , Qantas said.

Fig­ures from the air­line showed Sin­ga­pore jet fuel was at its high­est level since 2007/ 08, and prices in the sec­ond half of 2010/ 11 were ex­pected to be 20 per cent higher than in the first half of the year.

Mr Joyce said the air­line group could not rule out fur­ther in­creases in fares and sur­charges in the fu­ture.

Ris­ing fuel costs have forced Qantas to in­crease prices for the sec­ond time since Fe­bru­ary

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