Qantas, JAL drop fuel charges

27th Nov 2008

Qantas and JAL have both announced reductions in their fuel surcharges following the fall in the price of oil.JAL has filed an application with the Japanese
Ministry of Land, Infrastructure, Transport and Tourism (MLITT) to
revise from January 1, 2009 the international cargo fuel surcharge for
flights departing from Japan only.

The international cargo fuel surcharge on long-haul international routes
for flights departing Japan will decrease from 157 yen to 115 yen per
kg. In the case of medium-haul international routes, the surcharge will
decrease from 135 to 99 yen per kg, and on short-haul routes from 113
yen to 83 yen per kg.

JAL has decided to decrease the fuel surcharge on international cargo
flights departing Japan, as during the 3-month period August - October
2008 the price of Singapore kerosene-type jet fuel averaged US$115.92
per barrel.

The company is conducting a wide range of countermeasures to limit the
full impact of the price increase including fuel hedging, fuel
consumption reductions, and the introduction of more fuel-efficient
medium-sized aircraft to its freighter fleet. 

Despite these measures, the company is still reluctantly obliged to ask
its international cargo customers to bear part of the burden caused by
the unprecedented increase in the price of fuel over the past few years.


Meanwhile Qantas has announced it would reduce its Australian domestic
fuel surcharges by up to $5. 

The new surcharges, which will apply to tickets issued on or after Friday 28 November 2008.

The Executive General Manager of Qantas, Mr John Borghetti, said the airline had recently
reduced its international surcharges and domestic fares in response to falls in oil and jet fuel prices.

“In early October, we reduced international surcharges by as much as $40 per return trip, and
lowered domestic fares by approximately 2-3 per cent,” he said. 

“Oil prices have come down further since then, however they remain volatile.”

At current oil prices, the Qantas Group’s fuel bill this year will be $750 million higher than in


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