Qantas raises Australia and New Zealand fares on the back of rising jet fuel prices
Qantas has once again raised domestic and trans-Tasman ticket prices, this time going for a fare increase rather than a fuel surcharge. The latest fare increases are Qantas' third in the past six weeks.
Fares within Australia will rise by up to a further $10 each way, while prices to New Zealand will increase by up to 8 percent.
Both fare increases come into effect for tickets issued on or after 31 March.
Qantas hiked its fares last month with similar increases and is quoting the same reason this time: the international oil and jet fuel price continues to skyrocket.
Across the world, jet fuel prices this month are running roughly 50 percent higher than this time last year, according to recent data from airline industry body IATA and market price assessment benchmarkers Platts.
Qantas' CEO, Alan Joyce, is concerned by the increases and has flagged that further fare hikes are likely if fuel prices do not fall.
"Since international fuel surcharges and domestic fares increased last month, jet fuel prices have increased by a further 15 per cent, to more than US$134 per barrel today," Joyce said.
"Even with favourable hedging in place, it is still at a much higher price than we can absorb. In spite of this hedging offset, fuel surcharges and fare increases, we will not be recovering the full impact of current and forecast fuel prices," Joyce concluded.
The Qantas Group parent company is expecting its total fuel costs for the second half of the financial year to be above A$2 billion.
Qantas also increased its long-distance international fares earlier this month.
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