Qantas Air hikes fares anew
Qantas Airways has announced that it would further increase domestic, regional, and trans-Tasman flights for the second time after the forward adjustment made in February due to higher fuel prices.
In a statement, Qantas said fares on domestic routes and those for flights to regional centres would rise by up to $10 per sector.
Meanwhile, ticket prices would rise by up to eight per cent for trips across the Tasman.
Qantas last hiked ticket prices for domestic, regional and trans-Tasman services in February.
The national flag carrier has also twice raised the fuel surcharge for tickets on international flights to the US, Europe, South Africa and elsewhere.
Qantas, Air New Zealand, and Virgin Blue and other carriers globally, have all adjusted air fares upwards similarly for fuel surcharges this year in response to the spiralling cost of jet fuel.
In the same statement, Qantas chief executive Alan Joyce said high oil and jet fuel prices were a significant threat to airlines in Australia and around the world.
Mr Joyce described the situation as a ''major concern'' for the Qantas group of airlines.
''The situation today is very different to the last fuel crisis, when the global economy was strong,'' Mr Joyce said in a statement.
''This time, the world is still emerging from the global economic crisis, and demand is still recovering.''
Mr Joyce said since Qantas last lifted international fuel charges and raised domestic fares last month, jet fuel prices have advanced by a further 15 per cent to $US134 a barrel.
He also said the airline group could not rule out further increases in fares and surcharges in the future.
''Even with favourable hedging in place, it is still at a much higher price than we can absorb,'' Mr Joyce said
''In spite of this hedging offset, fuel surcharges and fare increases, we will not be recovering the full impact of current and forecast fuel prices.
Fuel costs were expected to reach $2 billion in the second half of 2010/11, Qantas said.
Qantas shares rose as much as 3 cents, or 1.4 per cent, to $2.12 in early trade.