Qantas responds again to higher fuel prices
Qantas announced (09-Mar-2011) it would again increase international fuel surcharges in response to increasing oil and jet fuel prices. For tickets issues on or after 17-Mar-2011, the following fuel surcharges will apply (one way ex-Australia):
- UK and Europe: new surcharge AUD190, previously AUD145;
- Mainland US, Canada, South America, South Africa and India: new surcharge AUD150, previously AUD115;
- Asia, Pacific, Honolulu: new surcharge AUD105, previously AUD75.
Qantas warned earlier that existing fuel surcharges would not cover the full impact of recent increases in fuel prices, and the airline the new surcharges will also not suffice to offset the full impact of oil price rises. Year-to-date average prices for Brent and Singapore Jet Fuel are at their highest levels since FY2008, the airline stated, and 2HFY2011 prices are forecast to be around 20% higher than in the first half. Singapore Jet Fuel was USD88 a barrel in Sep-2011, and is USD131 a barrel today. The airline stated it would continue to monitor fuel prices will fuel surcharges will be adjusted accordingly. [more]
Qantas: "Due to a range of factors, including political instability in the Middle East, prices have moved upward sharply in recent months. This prompted, last month, out first increase in international fuel surcharges since Jan-2008, as well as modest increases in domestic, regional and Tasman fares of up to 5%. Since then, jet fuel prices have increased by a further 12%, to more than USD131 a barrel today. This increased cost to our capital intensive business is something we, and other airlines, have to manage very carefully via hedging activities as well as surcharge and fare increases." Alan Joyce, CEO. Source: Qantas, 09-Mar-2011.