Qantas, Jetstar Hike Ticket Prices Due to Higher Aviation Fuel Cost
Qantas Airways and Jetstar will increase their ticket prices because of their higher aviation fuel bill.
The flag carrier said on Friday that it would hike beginning April 12 prices of international flights between $10 and $30 per flight while domestic fares will increase beginning April 5 between $7 and $10.
Jetstar would also adjust upward its budget trip tickets for trips between Singapore and Australia.
Qantas, however, said that the higher ticket prices, fuel surcharges and fuel hedging are not enough to offset the impact of soaring jet fuel prices and it would not fully recover the cost impact.
In January 2012, average fuel prices were at their highest since the 2008 global financial crisis. Current trading price of Singapore jet fuel is at $136.95 per barrel, while the air carrier hedged its remaining fuel requirements in 2011-12 at $123.59 per barrel.
Qantas estimates that underlying fuel costs would go up to $2.25 billion in the second half of 2012 from $1.95 billion a year ago.
With the higher fare, a one-way ticket from Australia to London or Frankfurt would go up to $380 from $350, while one-way tickets from Sydney to Melbourne would go up by $7.
It would be the second fair increase for Qantas for its domestic and international trips in so many months since February.
It is not just plane ticket prices that are going up, passenger numbers for Qantas also grew by 7.9 per cent in February compared to the same month in 2011.