Fuel Prices force Qantas to Increase Fares, Review Network and Schedules

Qantas is to increase its international and domestic fares for tickets issued in Australia on or after 4 June. The airline will increase international fares by approximately 4% and domestic fares by approximately 3%. This latest increase follows increases of approximately 3% for international fares and 3.5% for domestic fares earlier this month.

The Chief Executive Officer of Qantas, Mr Geoff Dixon, said the increases were unavoidable given the continuing high cost of oil.

"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 has increased its fuel hedging and now has cover for 59% of expected crude oil requirements in 2008/09 at US$111.81 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 our network and schedules of Qantas, QantasLink and Jetstar," Mr Dixon added.

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