Air travel will soon be much more expensive
Its bad news for those who use Qantas for international flights as the airline is going to increase its fuel surcharges for the second time and the changes will be apply to all tickets from the 17th of March.
Last month Qantas increased its fuel surcharge on international flights by 50 percent and shortly after increased the fuel surcharge on its domestic flights by five percent.
The price increases have been blamed on a “range of factors” which includes rising fuel prices and instability in the Middle East said Qantas Chief Executive Officer Alan Joyce.
“This increased cost to our capital intensive business is something we, and other airlines, have to manage very carefully via hedging activities as well as surcharge and fare increases.” He said.
He also said that the surcharges do not in themselves deal with the issue of oil rises which are ongoing. He said that he cannot rule out the possibility of further price rises.
“Our international surcharges and domestic, regional and Tasman fares remain under review, and further increases will be considered if necessary,” he said.
Fuel costs for Qantas Group will hit $2 billion in the second half of this financial year and is one of the biggest issues in the industry.
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