Qantas to Increase Fuel Surcharge
Sydney, 08 April 2005
Qantas said today that it would increase its fuel surcharge because of the continued escalation in the price of crude oil and jet fuel.
* For domestic travel in Australia and New Zealand the surcharge will increase by $8, from $12 to $20 (including GST) per sector;
* For trans-Tasman travel the surcharge will increase by $11, from $29 to $40 per sector;
* For other international travel (including Australian Airlines) the surcharge will increase by $31, from $29 to $60 per sector; and
* Jetstar will increase its surcharge from $10 to $19 (including GST) per sector.
The surcharges will be effective on tickets issued on or after Wednesday 20 April.
The Chief Executive Officer of Qantas, Geoff Dixon, said fuel was always a significant cost to an airline.
"The price of both oil and jet fuel are at historic highs and remain extremely volatile," Mr Dixon said.
"Based on current prices the Qantas Group will spend approximately $1 billion more on fuel in 2005/06 compared to the current financial year. The increased surcharge, together with the existing surcharges and our hedging activities will, taking into account the effects on demand, fall short by approximately $400 million.
"Consequently, in an environment of historically low airfares, we are looking very closely at all aspects of our business to find ways in which we can achieve further efficiencies."
Note: The surcharge applies to each flight/sector shown on a ticket or itinerary.
Issued by Qantas Corporate Communication (3252)