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Rising oil prices forces Qantas surcharge

Rising oil prices have forced Qantas to raise its fuel surcharge on international flights for the first time in three years. 


The Australian carrier said it would raise the charge on a one-way flight to Europe by between Aus$20 ($20) and Aus$50 from February 19.


The airline warned that it could not rule out further increases in the future. The move comes as crude oil prices continue to rise on the back of improving confidence in the global economy and unrest in Egypt.


Qantas said the price of jet fuel had risen from $88 a barrel in September to $117 now. The surcharge increase is the first since January 2008, around the time crude prices first broke the $100 mark, and follows similar moves by British Airways and Singapore Airlines.


Qantas chief executive Alan Joyce said: “Year-to-date average prices for both West Texas intermediate crude oil and Singapore jet fuel are at their highest since financial year 2008, and second-half financial year 2011 prices are forecast to be around 20% higher than in the first half.”


Qantas said it would not increase the surcharge on its low-cost carrier Jetstar but will adjust fares and hike baggage charges.


 

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