Qantas Raises Fuel Surcharges

Beginning August 14, Qantas will start charging fuel surcharges in its international routes, as well as raise the fare on its domestic flights. The company made this announcement early today citing the value of the Australian dollar and the rising cost of fuel for its decision to hike charges.

The company said that domestic fare rates, including its routes from QantasLink, the airline’s regional subsidiary, is going to have an increase of around 2-3%. Meanwhile, fuel surcharges for its international flights will vary and will depend on the routes.

The airline said, passengers should expect an additional $20 charge for an international one-way destination. Those flying to Europe should expect surcharges falling between $25 to $255 for one-way economy tickets, while first class and business class tickets should see surcharges between $65 to $445.

A company’s spokesperson said, “While we use a range of tools to mitigate the impact of fuel costs – including fuel surcharges, price increases and hedging – the Qantas Group is still under-recovering the cost of past fuel price increases.”

Qantas last raised fuel surcharges in April but the company said that since then, Singapore jet fuel rates in Australian currency had significantly increased.

These changes come at a time when Qantas is pushing to align its fees, especially in the midst of a partnership with Emirates to boost travel and business. The move enabled Qantas to lower its fees to as much as 30%.

Analysts say, it cannot raise fares in full because it will not be competitive.

Qantas flights cater to New Zealand, Europe, Asia and North Africa.