Qantas cuts fuel surcharges

Qantas has confirmed that it will reduce its international fuel
surcharges for tickets issued on or after Tuesday, 24 October 2006.The Chief Executive Officer of Qantas, Mr Geoff Dixon, said:

“When Qantas was forced to address the issue of high fuel costs in May 2004, we chose
to add a surcharge rather than increase the cost of fares so that we could reduce or
remove the additional charge if fuel prices dropped,” Mr Dixon said.
“This is the first time since then that we have seen a decrease in the price of fuel over a
sustained period, and we will monitor the situation closely over the coming weeks.
“If prices continue to fall, we will extend the reductions to our domestic surcharges, which
were not included in the most recent increase in August 2006, and look at further
reductions to our international surcharges,” he said.
Mr Dixon said that despite the recent drop in the price of oil, fuel costs remained a major
issue for airlines.
“Qantas still faces a significant shortfall compared to last year in terms of recovering fuel cost
increases, even after hedging and surcharges.”