Australia's Qantas Airways has announced a hike in fuel surcharges on international routes, for the third month in a row, in response to continuing rises in oil and jet fuel prices, according to the Shipping Gazette.
The airline said that from April 28, the cost of one-way fares from Australia to Europe and North America will increase by A$100 (US$105). The fares on domestic, regional and Tasmanian services will also increase by five per cent while a fuel surcharge of A$10 for domestic services will also be implemented.
CEO Alan Joyce was quoted saying further increases in oil and fuel prices were a continuing concern for the aviation industry. "After fuel hedging, fuel surcharges and fare increases, Qantas will still not fully recover these higher fuel costs.
"The revised fuel surcharges cover less than half of the increase in fuel cost for the Qantas international business for next year. With fuel prices at record highs, even if the fuel price begins to decrease it will be some time before we will be able to decrease the fuel surcharge."
The airline's CEO pointed out that the group will spend A$2 billion on fuel in the second half of this financial year, about A$300 million more than in the first half. The airline increased international fuel surcharges in February and March this year.
Joyce said Qantas would continue to closely monitor oil and fuel prices and warned that "our international surcharges and domestic, regional and Tasman fares remain under review, and further increases will be considered if necessary." – Source: Shipping Gazette