The Qantas Group this month released details on its response to the recent increased fuel costs.
Higher jet fuel costs will impact future ticket prices for Qantas and Jetstar passengers travelling domestically and internationally.
Jet fuel is Qantas’ biggest operational cost and market prices remain consistently high.
The Qantas Group’s jet fuel cost for the six months to 31 December 2011 was $2.2 billion, an increase of around $450 million compared with the previous year.
Average year to date jet fuel prices are at their highest level since 2007/08.
From 15 February 2012, Qantas international fares will include $20 – $60 surcharge increases (one-way) depending upon the route.
The previous increase in international fuel surcharges took place on 19 April 2011.
Qantas also increased domestic Qantas and QantasLink fares from 9 February to reflect fuel costs. Increase amounts will vary by route and fare class but will average approximately 2.5 per cent.
An increase of $2 in the fuel surcharge for domestic Qantas Frequent Flyer Classic Award redemptions (from $10 to $12) will also be implemented.
While fuel surcharges, price increases and hedging are being used to mitigate the impact of fuel prices, they will not fully recover the cost impact. Qantas has hedged 86 percent of its remaining fuel requirement in 2011/12 at a worst case crude oil price of US$121 per barrel.
