Qantas is increasing its international fuel
surcharges and domestic fares in response to high global jet fuel
Jet fuel is Qantas’ largest operational cost and market
prices remain consistently high. Average year to date fuel prices
are at their highest level since 2007/08. On 30 March 2012,
Singapore Jet Fuel was trading at a price of US$136.95 per barrel.
From 12 April 2012, the following fuel surcharge
increases will be applied to Qantas international fares booked in
Honolulu increase by A$10 to A$175
Johannesburg / Santiago
increase by A$20 to A$260
United States increase by A$30 to A$340
London / Frankfurt
increase by $30 to $380
From 5 April 2012, domestic Qantas and QantasLink fares will
also increase to reflect high fuel costs. The amount of the fare increase will vary by route and fare class, but will average
Also from 5 April 2012, Qantas
will increase the fuel surcharge for Qantas Frequent Flyer
Classic Award redemption tickets by $4 for domestic travel (from
$12 to $16) and by $10 for Trans-Tasman flights (from $20 to $30).
Jetstar will increase fares on some routes within both
its Singapore and Australian markets, as well as some service
charges, in response to higher fuel costs.
fuel surcharges, price increases and hedging are being used to
mitigate the impact of fuel prices, they will not fully recover
the cost impact. The Qantas Group has hedged 100% of its
remaining fuel requirement in 2011/12 at worst case crude oil
price of US$123.59 per barrel. At current prices the group expects
underlying fuel costs to increase by approximately $300 million
from $1.95 billion in the second half 2010/11 to approximately
$2.25 billion in the second half 2011/12, due to higher forward
market jet fuel prices and increased flying.
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