Qantas Increases Fuel Surcharge

SYDNEY, 15 October 2004

Qantas said today that it would increase its fuel surcharge because of the continued escalation in the price of crude oil.

The surcharge will increase by $2, from $10 to $12 per sector, for domestic travel and by $7, from $22 to $29 per sector, for international travel.

The Chief Financial Officer of Qantas Airways, Peter Gregg, said the airline had made the decision reluctantly.

"However, with jet fuel now at more than US$60 a barrel and showing no sign of falling, an increase in the airline's fuel surcharge was unavoidable," he said.

"The hedging we have in place and the higher fuel surcharge will not cover all of the increased cost of jet fuel," Mr Gregg said.

"Qantas will continue to absorb much of this increased cost and seek greater efficiencies across the business." Qantas first announced a fuel surcharge in May. It increased its domestic surcharge from $6 to $10 a sector, and its surcharge on international sectors from $15 to $22 a sector, in August.

The $12 fuel surcharge for Qantas Domestic, QantasLink, Jetstar and domestic New Zealand services and the $29 surcharge for Qantas International and Australian Airlines services will be effective on tickets issued and travel commenced on or after 20 October.

Issued by Qantas Corporate Communication (3164)