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Qantas
is to introduce a fuel surcharge on passenger tickets sold
after midnight on 17 May due it said to a substantial rise in jet fuel prices.
The Chief Executive Officer of Qantas Airways, Geoff Dixon, said jet fuel prices
were currently about US$44 a barrel, the highest level for 14 years.
"Fuel represented about 15 per cent of Qantas' costs last year, the second largest
cost to the Group after salaries and wages," Mr Dixon said.
"The US dollar price of jet fuel today is almost 60 per cent higher than it was 12
months ago - US$44 a barrel compared with US$28 a barrel - and this has significantly increased the cost to our business."
Mr Dixon said the main reasons for the jump in the fuel price were continuing
tensions in the Middle East and strong global demand, particularly from the United
States of America and China.
He said the last time Qantas introduced a passenger fuel surcharge was in late
2000 after jet fuel prices spiked to more than US$43 a barrel in October 2000 due
to surging global demand.
The fuel surcharge will be $6 per sector for Qantas Domestic, QantasLink, Jetstar
and domestic New Zealand services and $15 per sector for Qantas International
services and Australian Airlines. Many
other airlines around the globe are also introducing a fuel surcharge.
British Airways as one other example, has said it will add £2.50 per flight sector (£5 return
trip) as a separate fuel surcharge to its fares in the UK with effect from Thursday,
May 13. This fuel surcharge applies to all fares sold across the British Airways’ global
network. In all markets outside of the UK a surcharge of $4 USD per flight sector
will be added. |
