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Sunday, April 1, 2012

Why Qantas Airways raise ticket prices

Why Qantas Airways raise ticket prices : OVERSEAS holidays and business trips are about to get more expensive after Qantas Airways raised ticket prices and increased fuel surcharges for the second time in eight weeks.

Qantas said yesterday fuel surcharges on its international flights would rise between $10 and $30 from April 12. The fuel surcharge for a return trip to London or Frankfurt has been raised to $760, from $700.

Domestic fares on Qantas and QantasLink were not spared either, with ticket prices rising about 5 per cent.

A Qantas fare for a one-way flight between Melbourne and Sydney - the world's fourth busiest air route - will start at $129 from April 5, up $7 from $122 currently.

Qantas said jet fuel was its largest operational cost and prices were at their highest since 2007-08. ''While fuel surcharges, price increases and hedging are being used to mitigate the impact of fuel prices, they will not fully recover the cost.''

The airline, which last raised fuel prices in February, said underlying fuel costs for the group were expected to rise by $300 million in the second half of 2011-12 to $2.25 billion.

Qantas shares were down 3¢ at $1.785 yesterday

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