Qantas hikes fuel surcharge on domestic, international fares
By David Flynn, March 30 2012
Qantas will raise the cost of domestic and international airfares by up to $30 each way next month, in response to ever-increasing costs for jet fuel.
From April 5, domestic Qantas and QantasLink fares will go up by an average of 5%.
Typical increases include $7 for trips between Sydney and Melbourne, $10 for Melbourne-Brisbane and also $10 for the cross-country trek between Sydney and Perth.
The fuel surcharge levied on Qantas Frequent Flyer Classic Award redemption tickets will rise by $4 for domestic travel (up from $12 to $16) and by $10 for Trans-Tasman flights (from $20 to $30).
From April 12, international travel will attract a higher fuel surcharge on top of the ticketed cost.
The fuel surcharge component for a one-way fare to Asia will rise by $10 to $175, while trips to the USA, London and Frankfurt will go up by $30 (giving USA travel a total fuel surcharge of $340 each way, with $380 for Europe).
The move comes just eight weeks since Qantas last raised its fuel surcharge on February 2.
"Jet fuel is Qantas' largest operational cost" the airline said in a statement "and market prices remain consistently high. Average year-to-date fuel prices are at their highest level since 2007/08."
David Flynn is the Editor-in-Chief of Executive Traveller and a bit of a travel tragic with a weakness for good coffee, shopping and lychee martinis.
01 Mar 2012
Total posts 2
Can I ask a n00bie question, why do the airlines insist on increase the 'levy' rather than include it as a part of the actual airfare? This is a cost of business is it not?
At the end it doesn't make alot of difference in Australia as airlines are mandated to display the total airfare, but some countries don't have the same 'restrictions' on carriers.
03 Jan 2011
Total posts 665
Most places are mandated to display the total airfare.
As I understand it, it's a backend systems thing -- easier to update an additional fee than to update the whole gamut of fares.
And in some countries, airlines pay tax on fare income but not (or lower rates) on ancillary charges like this, or baggage fees.
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