Qantas hikes fares again

Qantas has announced that for the fifth time since the beginning of the year it will be hiking its ticket prices. The latest rise will apply to tickets bought from 28 April. The decision has been made in the face of the increasing cost of jet fuel. Since January, the fuel surcharge on a return international journey has increased three-fold. A surcharge of $580 is now being passed to passengers who wish to travel to the UK and Europe and back. A return ticket to the US has a surcharge of $500 and a return ticket to destinations within the Asia-Pacific has a $290 fuel surcharge attached.

Since November last year the price of a barrel of jet fuel has risen by 40 per cent. According to Qantas chief executive Alan Joyce the cost of fuel is the biggest threat to the industry since the global financial melt down.

Qantas is also pushing the price of a domestic ticket up by five per cent and placing a $10 surcharge on internal flights and a $20 fuel surcharge on flights across the Tasman. Mr Joyce said the increased fuel surcharge did not even cover half the cost of fuel, adding that he was not in a position to rule out future fare increases.

Centre for Asia Pacific Aviation analyst, Peter Harbison, said Qantas was possibly pushing the limit with the latest round of price revisions and customers were now likely to be feeling the pinch.

The announcement comes as Qantas holds talks with the ACTU in an attempt to avoid walkouts by its ground staff, engineers and pilots.

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