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.
