Qantas Cut Fuel surcharges again

[Standby]

From Qantas.com

Qantas to Again Reduce Fuel Surcharges

Latest News​

Sydney, 22 December 2008
Qantas announced today it would again reduce its international and domestic fuel surcharges.
The new surcharges, which will apply to tickets issued on or after Tuesday 23 December 2008, will be:
International ($A one way from Australia):
UK and Europe - New surcharge $160. Previously $190
Mainland USA, Canada, South America, South Africa and India - New surcharge $130. Previously $150
Asia, Pacific, Honolulu - New surcharge $95. Previously $110
New Zealand - New surcgarhe $55. Previously $65
Domestic (A$ per sector including GST)
Qantas and QantasLink - New surcharge $18. Previously $21
The Executive General Manager of Qantas, Mr John Borghetti, said the airline had reduced both international and domestic surcharges twice and also reduced domestic fares in recent months.
He said that at current oil prices, the Qantas Group's fuel bill this year would still be $400 million higher than in 2007/08.

Issued by Qantas Corporate Communication

 

[oz_mark]

Not bad, 13-15% coming off the surcharge, but still a way to go.

 

[oz_mark]

Heat on Qantas over fuel levies

Heat on Qantas over fuel levies | The Australian

QANTAS is facing questions about why its fuel surcharges are as much as 866 per cent higher than they were in 2004, even though oil prices have fallen to similar levels.

The airline introduced the current round of fuel surcharges in May 2004, with a $6 per sector levy on domestic flights and a $15 per sector charge on international flights.

That translated into a $30 charge each way on two-sector flights to Europe and $15 on non-stop flights to the US.

Even with reductions this week of up to $30 per flight, the fuel surcharge on a one-way trip to Europe, at $160, remains five times higher than in 2004.

 

[Mal]

Any negative press over surcharges towards Qantas and their friends is good. Things mysteriously happen with fuel surcharges when the media puts on pressure. Expect another cut in the near future.

 

[GCS]

When QF introduced the surcharge in May 2004, the price of oil was $44 a barrel - higher than it is now.

About Qantas - Media Room - Media Releases

Let's not get too excited about a small surcharge reduction.

 

[Kendall Roy]

I made some changes to an award booking on the 22nd, however it hasn't yet re-ticketed...

Does this mean I'll benefit from the reduced fuel fines?

Cheers

 

[Mal]

I made some changes to an award booking on the 22nd, however it hasn't yet re-ticketed...

Does this mean I'll benefit from the reduced fuel fines?

Cheers

I believe so, but not 100% sure. I was promised a 50c refund on my recent award ticket (assume currency changes for an international airport tax) when I changed carriers for one leg. It hasn't turned up though!

 

[garyjohn951]

And they have NOT passed it on, on some fares

Last week Mel-HKG return was Red-eye at 1298 return. The Fuel surcharge drops $15 each way , so fare today should be $1268 return.

NOT LIKELY, it is now $1295

 

[oz_mark]

And they have NOT passed it on, on some fares

Last week Mel-HKG return was Red-eye at 1298 return. The Fuel surcharge drops $15 each way , so fare today should be $1268 return.

NOT LIKELY, it is now $1295

Fuel surcharges into and out of Hong Kong are regulated, so probably aren't affected by this change (although they have themselves dropped over the last few months)

 

[garyjohn951]

I accept your point about the regulation, however their media release by using the word ASIA is still deceptive.

 

[Standby]

When QF introduced the surcharge in May 2004, the price of oil was $44 a barrel - higher than it is now.

About Qantas - Media Room - Media Releases

Let's not get too excited about a small surcharge reduction.

Apples and oranges comparisons here. You quote the price of Oil per Barrel at $44. The Media release says Jet Fuel moving from USD$28 to USD$44. The current jet fuel price is closer to $52-55 per barrel .Most airlines have fuel hedging in place and are locked into contracts well above the USD$55 even if their hedging allows them to take advantage of price drops they still pay a "Break premium" to access lower rates which wooul have it somewhere near $60 (nearly 1/2 the price some airlines locked into with'no back out clause hedging..like CX). That doesnt mean the surcharge shudnt come down on Dom flight to between $10-15. Int flights are tougher to guage the level but they shud come off by another 15-20%

 

[coyote25]

Isn't it about time that QANTAS stated what they saw as a average fuel price that is built into their fares, say $65 USD, and then say that anything above that is a surcharge adjusted say every 6 months to reflect their rolling fuel contracts. For now that would mean minimal change since their contracts are at very high rates, but later there would be significant reductions.



This won't happen however for a few reasons:

• Fuel surcharges get added directly to award tickets so extra revenue
• Fuel surcharges don't get commissions for travel agents

Really the above reasons are the only reason to put surcharges on, otherwise you just adjust your price like anyone else selling any other product.

The media and the public just needs to keep calling them on this, at least that might stop them going the JAL way and have surcharges greater than base ticket prices

 

[JohnK]

Any negative press over surcharges towards Qantas and their friends is good. Things mysteriously happen with fuel surcharges when the media puts on pressure. Expect another cut in the near future.

Well another cut happened recently. Is there anyway we can initiate more bad press for Qantas to put pressure on them to reduce the international fuel surcharges further?

 

[Mal]

Well another cut happened recently. Is there anyway we can initiate more bad press for Qantas to put pressure on them to reduce the international fuel surcharges further?

Singapore Jet Fuel is now around $US1.40/gallon. As a comparison, in Nov 2007, it was averaging $US2.68/gallon, and puts us roughly at the same cost as Feb 2005.

My data comes from:
Singapore Kerosene-Type Jet Fuel Spot Price FOB (Cents per Gallon) and
http://www.eia.doe.gov/pub/oil_gas/...troleum_status_report/current/pdf/table15.pdf

Maybe another reduction will be happening soon as the price has remained relatively stable over the last month?

 

[dajop]

Maybe another reduction will be happening soon as the price has remained relatively stable over the last month?

. Thanks Mal, you've brought a smile to my face and I've had a good laugh. It's been some time since I've read something this funny on AFF. I hope you're "maybe" comes true, but all the evidence points to reductions in "inclusive" fares and only minimal reductions in fuel fines.