Qantas to Increase Fuel Surcharges
Sydney, 23 August 2005
Qantas said today that it would increase its fuel surcharges because of the continued escalation of the price of crude oil and jet fuel.
The Chief Executive of Qantas, Mr Geoff Dixon, said the decision had been made reluctantly.
"The volatility of current and future oil and jet fuel prices is a serious issue for all airlines," Mr Dixon said.
"At current prices, the Qantas fuel bill will rise by more than $1.25 billion this year.
"Hedging and surcharges will continue to partially offset this significant cost. However we still face a $650 million shortfall at current prices."
The new surcharges are:
* For Qantas domestic travel in Australia and New Zealand, an increase of $6 from $20 to $26 incl GST;
* For QantasLink domestic travel, an increase of $2 from $20 to $22 incl GST;
* For Qantas trans-Tasman travel, an increase of $6 from $40 to $46; and
* For other Qantas and Australian Airlines international travel, an increase of $15 from $60 to $75.
They will be effective on tickets issued on or after Friday 2 September 2005.
At this stage, there will be no increase in the surcharge on Jetstar domestic services, which remains at $19 (incl GST).
Mr Dixon said Qantas would continue to monitor the impact of the surcharge increases on demand.
The surcharges apply to each flight/sector shown on a ticket.
Issued by Qantas Corporate Communication (3314)