Qantas to Increase International and Domestic Fares

Australian airline Qantas has announced that it will increase its international and domestic fares by 4% and 3%, respectively, for tickets issued in Australia on or after June 4, 2008.

Geoff Dixon, CEO of Qantas, said: “Oil and jet fuel prices continue to break records, with west Texas intermediate (WTI) spot crude oil passing $134 a barrel overnight and Singapore jet fuel today trading at nearly $166 a barrel.”

Qantas has increased its fuel hedging and now has cover for 59% of expected crude oil requirements in 2008-09 at $111.81 a barrel WTI, inclusive of option premium. Despite our hedging activities, fare increases, surcharges, and strong focus on managing costs across our operations, we will not cover these higher fuel costs, which at current prices will add more than A$2 billion to our fuel bill in 2008-09.”