Qantas announced that it would increase its international and domestic fares for tickets issued in Australia from 4 June onwards.
Qantas CEO, Geoff Dixon said that international and domestic fares would increase by 4 per cent and 3 percent respectively.
Oil and jet fuel prices continue to break records, with West Texas Intermediate spot crude oil passing US$134 a barrel overnight and Singapore Jet Fuel today trading at nearly US$166 a barrel.
Mr Dixon said Qantas had increased its fuel hedging and now had cover for 59 per cent of expected crude oil requirements in 2008/09 at $US111.81 a barrel WTI, Inclusive of option premium.
Despite our hedging activities, fare increases, surcharges, and strong focus on managing costs across our operations, we will not cover these higher fuel costs, which at current prices will add more than A$2 billion to our fuel bill in 2008/09."
We are continuing to target further efficiency improvements which now include a review of the network and schedules of Qantas, QantasLink and Jetstar, Mr Dixon said.
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