Qantas and Jetstar have told the Australian Stock Exchange they are raising airfares (or surcharges) due to sustained high fuel costs and new carbon pricing schemes in Australia and the European Union. But will their real fares actually increase or are these just paper price rises? Surely, market forces will dictate what these carriers can charge and competitor activity will be the ultimate factor. Qantas is already losing market share and really can’t afford to give up any more. 

For the record, Travel Daily reports:

“Effective 15 Feb QF international fuel surcharges will rise to $350 one way, up $60, for flights to London and Frankfurt. The new fuel surcharge for US flights will be $310 in each direction, also up $60, while for Buenos Aires/Santiago/Johannesburg flights the surcharge rises $40 to $240. And for Asia and Honolulu flights the current $145 surcharge will increase to $165 one way.

“Qantas year-round domestic fares will also increase from 9 February, with increases of around $5 per sector.

“Qantas Frequent Flyer Classic redemptions will incur a $12 fuel surcharge, up $2.

“Also from 15 February Qantas will impose a surcharge of $3.50 each way to fares booked in Australia for QF flights to and from London and Frankfurt, in relation to the EU Emissions Trading Scheme.

“The Australian carbon pricing system, which comes into effect on 1st July, will see a distance-based surcharge applied to Qantas and QantasLink fares, costing $1.82 for flights up to 700km, $2.79 for 701-1200km, $4 for 1201-1900km and $6.86 for 1900km+. These surcharges will take effect for tickets booked on or after 15 February, for travel on or after 01 July.

“Jetstar will also increase all domestic lead-in fares by $10 “in response to higher cost inputs including fuel prices and the introduction of the carbon price,” with these increases also effective 15 February for travel from 01 July 2012.”


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