Qantas Award Charges Outrageous

[CaptJCool]

Fuel is hedged as distinct to gambled. As I understand it, this reduces the volatility of pricing rather than reducing it. Of course now with oil at US$30 per barrel, it's eventually flowed thru to a $1 a litre - can't remember what the peak price was historically. If we were to be given the real price based on barrel price, it's about half what we are charged at the bowser. .....

QF is now a private Corp. it expects to make a taxable profit which it won't do if it charges lower fares...

 

[BAM1748]

Fuel is hedged as distinct to gambled. As I understand it, this reduces the volatility of pricing rather than reducing it. Of course now with oil at US$30 per barrel, it's eventually flowed thru to a $1 a litre - can't remember what the peak price was historically. If we were to be given the real price based on barrel price, it's about half what we are charged at the bowser. .....

QF is now a private Corp. it expects to make a taxable profit which it won't do if it charges lower fares...

I think we agree, QF buys it differently at a pre agreed price, but when oil goes up they forget that and up goes the surcharge before their current hedge has expired. But goes down somewhat more slowly.

 

[CaptJCool]

Spot on !
We all pay more even though they don't because of the hedge protection.
however, is the point of capitalism to extract the max price a customer is willing to pay vs the actual cost base ?
The existing fare basis suggests the same seat can sell at 3-4 different price points ?

 

[cove]

With the huge price falls on oil it would be difficult to have a hedge price below the spot price. All you could have done is gone short using derivatives.

 

[BAM1748]

With the huge price falls on oil it would be difficult to have a hedge price below the spot price. All you could have done is gone short using derivatives.

Of course, but go back a few years to the increase above $100 BBL and the fuel surcharge was upped unless it was just coincidence they were signing off on the next round fuel pricing.

 

[Limewood]

I think QF is guilty as charged by people here.

We're still waiting on the defence to turn up here and make its case.

No comment from QF is a comment from QF.

Matt

They will be along shortly to explain it all NOT

 

[Simo]

Some of the redemption costs have been close to the original fare.. I use points for upgrades

 

[Simo]

Or very select times when it is good value to use points.

 

[cove]

We use QF points to get from Perth to the east coast and back in business class.

 

[Limewood]

We only use points for long haul and buying a ticket then going in the upgrade lottery is not what we do.

 

[CaptJCool]

Yea. Never been granted an upgrade..... And unless u buy the right ticket which is more expensive anyway you can't even get in the priority queue....

 

[Mr_Orange]

We use QF points to get from Perth to the east coast and back in business class.

We've done the same.

 

[Limewood]

Still waiting for Q to pop in and advise when these award booking impost charges will be reduced to most other airlines standard

 

[Limewood]

Where are you Qantas?, any good news on the subject.

 

[clifford]

Just booked a one-way QF award ticket for May in Y, SYD-BKK, 28,000 points and AUD 156 (couldn't face the journey on JQ). Looked at booking the return and found they wanted AUD 240 + 28,000 points. How can they justify the extra $80+ when the taxes ex BKK are probably lower than SYD? Just very rude, Qantas!

So instead I booked a 1-way Y class award ticket on SQ, BKK-SIN-SYD, using 17,500 UA miles and taxes of USD 43.20.

 

[smit0847]

It has nothing to do with the price of fuel. It's a reward ticket surcharge.

 

[JohnK]

Don't Qantas buy their fuel on the futures market? Ie. the fuel price Qantas pay has nothing to do with day-to-day oil price fluctuations, and depends entirely on the rate the negotiated back when the current fuel supply contract was signed. I'm not saying the Qantas charges are justified (when compared to other airlines), just that the oil price may not come into it as directly as might be thought

While it's true that Qantas and many other airlines hedge fuel purchases it's still no excuse for the current level of fuel surcharges which were set 3-4 years ago when price of oil was out of control. Now that price of oil is lower those fuel surcharges should have been removed.

Plus I would not be surprised if fuel surcharge was increased again next time price of oil increases.

 

[Limewood]

It has nothing to do with the price of fuel. It's a reward ticket surcharge.

I think you mean its a "ticket surcharge" no reward.

Be nice if the general media picked this impost up and ran with it. might get QF to stop this rip off.

 

[Limewood]

Looked up QF Y award flight for 2 pax BNE/HNL/BNE for Sept the charges were $818!!, looked at AA award their charges were USD$208 say AUD$300 its wrong and should be rectified, what do you think?.

 

[Deleted member]

Yikes. Not sure what to say