Rising fuel costs will force Qantas to increase the price of airfares from May 9. CEO Geoff Dixon says the plan
Rising fuel costs will force Qantas to increase the price of airfares from May 9.
CEO Geoff Dixon says the plan is part of immediate steps to minimise the impact of rising fuel costs.
The fare increase will apply to all Qantas and QantasLink routes across all fare classes sold in Australia.
Domestic fares will increase by approximately 3.5 percent, while international fares are set to rise by around 3 percent.
Jetstar is also reviewing its fare levels, while increases to Qantas fares sold outside Australia are also under consideration.
“An increase in base fares is now necessary to partially bridge the widening gap between the actual increase in the cost of fuel and the amount we offset through surcharges or non-fuel cost improvements. We will continue to monitor fare and surcharge levels and review our network and schedule to optimise capacity,” says Dixon.
He says Qantas will therefore continue with efficiency improvements through an extension of its Sustainable Future Program, as well as a hiring freeze and cutbacks to non-essential expenditure.
They have also announced plans to freeze the company’s share buyback program.