It’s more bad news for passengers: Qantas has increased its fuel surcharge for international flights yet again as unrest in the Middle East continues to inflate the global oil price.
Ticket prices to and from New Zealand will increase by 8 percent and domestic flights will see an increase of $10 per passenger from March 31st. Qantas chief executive Alan Joyce has said that since increasing fares and the fuel surcharge in February jet fuel has rocketed a further 15 percent.
He said that the increase in oil prices is a “major concern” to all airlines, not just Qantas.
“The situation today is very different to the last fuel crisis, when the global economy was strong,” Mr Joyce said.
He said that he could not rule out further price increases as the entire industry is dependent on jet fuel prices.
“Even with favourable hedging in place, it is still at a much higher price than we can absorb,” Mr Joyce said
“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.” He said that the cost of fuel is expected to hit $2 billion over the next six months.
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