Qantas announced that it would increase its international fuel surcharges for tickets issued on or after Thursday, 9 August.The Chief Executive Officer of Qantas, Mr Geoff Dixon, said there would be no changes to the Australian and New Zealand domestic surcharges.
“Along with most airlines, Qantas has been closely monitoring the upward movement in oil and jet fuel prices over recent months, and with Singapore jet fuel now nearly US$90 a barrel, we have adjusted our international surcharges to or below their August 2006 levels,” Mr Dixon said. “Should the fuel prices drop, we will reduce the surcharges, as we have done on two separate occasions in the past 10 months. The price of jet fuel has increased by more than US$17 per barrel since the last adjustment. “Despite our robust fuel hedging policy and surcharges, we are nowhere near covering the additional cost to our business of the high fuel prices. At current forward prices, and after hedging, the Qantas Group’s fuel bill for 2007/08 will be more than A$300 million higher than 2006/07, despite the benefit of the stronger Australian dollar.” Mr Dixon said Qantas had limited the increase to its international services. “There are no changes to our Australian and New Zealand domestic surcharges, and there will be no change to the 500 points Frequent Flyers can use to pay for the taxes, levies and surcharges on their domestic flights,” he said.