- Oct 8, 2010
Some good news for Qantas Frequent Flyers, and Qantas International customers: QANTAS LOWERS FREQUENT FLYER CHARGES, REVIEWS INTERNATIONAL FARE STRUCTURE
My reading of it is that the fuel surcharge will be incorporated into the fare, so prices won't actually drop... Good for reward tickets but no real change for revenue tickets.
QF press release said:From tomorrow, fuel-related charges that currently apply to Frequent Flyer on Qantas and Jetstar Classic Award redemption bookings will fall by up to $110 in Economy and up to $130 in Premium Economy on some routes for a return flight
...will move to gradually restructure its international tariffs so that fuel surcharges are absorbed into base fares
I suspect you are right. Having said that ALL airlines will jump on that BandwagonThis of course makes sense and is what should have been done right from the start. The danger is of course that QF has got used to the new level of revenue, so the restructured tariffs end up no cheaper than the total fares today. And then when oil prices go up again as they surely will, a whole new fuel surcharge is suddenly deemed necessary.
Overall fares will not change as a consequence of the surcharge gradually being absorbed into base fares, as prices advertised to customers already include taxes and charges. Qantas will continue to price competitively, with fares moving in line with the broader market.
While global fuel prices have fallen in recent months, international air fares are extremely competitive and are significantly lower than when surcharges were first introduced 10 years ago.
Given the size of the Qantas International network the process to absorb fuel surcharges into international base fares for up to 200 destinations will take time. As overall fares are not changing, customers will not be disadvantaged.
This change to Qantas’ international fare structure is in addition to its regular sales activity. Last week, the airline lowered economy fares to Asia, the US and Europe by more than $300 as part of a sale.
From tomorrow, fuel-related charges that currently apply to Frequent Flyer on Qantas and Jetstar Classic Award redemption bookings will fall by up to $110 in Economy and up to $130 in Premium Economy on some routes for a return flight. Reductions will vary across the network but average around 14 per cent.
“Factoring in lower fuel prices, IATA estimates that the net profit airlines make per passenger this year will rise by just $1 compared with last year, from $6 to $7.
Good that it's no longer on ff redemptions although cant help but feel they've been forced into it by virgin (rather than being proactive). Appropriate it's in the base fare (where it should have been years ago!)
Can Red Roo perhaps confirm/refute whether the removal of the surcharges also applies to J/F cabins? The press release only mentions Y/Y+. Thanks.
Airline tickets are cheaper now than ever. The currebt sale is $649 to Singapore . How much do you think they should charge?
I think they should charge the current amount, less most if not all, the amount that fuel has dropped. They put the special surcharge on with increasing fuel charges .. now take it off!!