Qantas to rise fares by A$10 due to rising fuel prices
The second airfare increase this year comes after jet fuel prices have grown an additional 15% since February. The increase applies to tickets issued on and after March 31.
Additionally, both!Virgin Blue and Cathay Pacific warned that the growing fuel costs will hurt their expected profits this year.
The second airfare increase by Qantas this year
It was in February, when Qantas Airways raised the fuel surcharges on domestic and international routes. Current unrests in South Africa and the Middle East are pushing fuel prices further up. Oil overcame $130 per barrel with no turnover expected anytime soon. Qantas says its fuel bill will surpass 2 million Australian dollars in the second half of the current financial year.
All domestic and regional tickets issued on March 31 and on will see a A$10 higher fuel surcharge. Airfares to and from New Zealand will increase by 8% on average. Considering the current forecasts, Qantas said it wouldn't rule out further fare increases.
Virgin Blue expecting a A$80 million pre-tax loss
The smaller rival suffers a lot more due to its focus on the holiday travel market. The airline announced Wednesday that a pre-tax loss of up to A$80 million is expected. Virgin Blue shares dropped to a seven-month low soon after.
More on this topic: The Wall Street Journal
Jiří Parimucha, Mar 24, 2011
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