Qantas increases fuel surcharges for bookings Aug 13/14 onwards

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[TD="width: 85%"]Qantas Responds to High Fuel Costs[/TD]
[TD="width: 15%, align: right"] 30 July 2013[/TD]
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Due to recent increases in fuel costs and the depreciation of the Australian dollar, Qantas will increase its international fuel surcharges for tickets issued in Australia on or after 14 August 2013. International base fares on some routes will increase instead of fuel surcharges, and domestic base fares will increase across the Qantas Domestic network on average between 2 and 3 per cent.


The increases to fuel surcharges vary by route and cabin. Customers travelling in Economy on the routes on which the changes have been applied will see an average increase of around $20 one way.


There are a number of international routes – namely to Hong Kong, the United States and South Africa - where regulatory and market conditions make it more appropriate to incorporate the increase into the base fare, rather than the fuel surcharge, as means to recover fuel costs. For example, Economy customers travelling to the United States will see an increase in the base fare of $25 one way.


This is the first time Qantas has increased its fuel surcharges across the international network since April 2012. Since that time, the real cost of Singapore Jet Fuel in Australian dollars has increased significantly. While we use a range of tools to mitigate the impact of fuel costs – including fuel surcharges, price increases and hedging – the Qantas Group is still under-recovering the cost of past fuel price increases. We regularly review our fuel surcharges policy and will consider further changes to the fuel surcharge policy as appropriate.


Qantas international fuel surcharge and/or base fare increases

Travel Agents will see an increase in either the fuel surcharge of base fare in their GDS from 14 August 2013, across most of the Qantas international network, depending on route and cabin as follows:

[TABLE="class: basic"]
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[TD]

Destination​

[/TD]
[TD]

Cabin​

[/TD]
[TD]

Current Fuel
Surcharge
(one way)​

[/TD]
[TD]

New Fuel
Surcharge
(one way)​

[/TD]
[TD]

Increase​

[/TD]
[TD]

YQ or Base
Fare​

[/TD]
[/TR]
[TR="class: underline1"]
[TD]

United States​

[/TD]
[TD]

Economy​

[/TD]
[TD]

$340​

[/TD]
[TD]

$340​

[/TD]
[TD]

[$25]​

[/TD]
[TD]

Base Fare​

[/TD]
[/TR]
[TR="class: underline1"]
[TD]

Premium Economy​

[/TD]
[TD]

$340​

[/TD]
[TD]

$340​

[/TD]
[TD]

[$25]​

[/TD]
[TD]

Base Fare​

[/TD]
[/TR]
[TR="class: underline1"]
[TD]

First / Business​

[/TD]
[TD]

$340​

[/TD]
[TD]

$390​

[/TD]
[TD]

$50​

[/TD]
[TD]

YQ​

[/TD]
[/TR]
[TR="class: underline1"]
[TD="bgcolor: transparent"]

UK / Europe /
North Africa​

[/TD]
[TD="bgcolor: transparent"]

Economy​

[/TD]
[TD="bgcolor: transparent"]

$230​

[/TD]
[TD="bgcolor: transparent"]

$255​

[/TD]
[TD="bgcolor: transparent"]

$25​

[/TD]
[TD="bgcolor: transparent"]

YQ​

[/TD]
[/TR]
[TR="class: underline1"]
[TD="bgcolor: transparent"]

Premium Economy​

[/TD]
[TD="bgcolor: transparent"]

$290​

[/TD]
[TD="bgcolor: transparent"]

$325​

[/TD]
[TD="bgcolor: transparent"]

$35​

[/TD]
[TD="bgcolor: transparent"]

YQ​

[/TD]
[/TR]
[TR="class: underline1"]
[TD="bgcolor: transparent"]

First / Business​

[/TD]
[TD="bgcolor: transparent"]

$380​

[/TD]
[TD="bgcolor: transparent"]

$445​

[/TD]
[TD="bgcolor: transparent"]

$65​

[/TD]
[TD="bgcolor: transparent"]

YQ​

[/TD]
[/TR]
[TR="class: underline1"]
[TD]

Middle East​

[/TD]
[TD]

Economy​

[/TD]
[TD]

$115​

[/TD]
[TD]

$140​

[/TD]
[TD]

$25​

[/TD]
[TD]

YQ​

[/TD]
[/TR]
[TR="class: underline1"]
[TD]

Premium Economy​

[/TD]
[TD]

$130​

[/TD]
[TD]

$165​

[/TD]
[TD]

$35​

[/TD]
[TD]

YQ​

[/TD]
[/TR]
[TR="class: underline1"]
[TD]

First / Business​

[/TD]
[TD]

$155​

[/TD]
[TD]

$220​

[/TD]
[TD]

$65​

[/TD]
[TD]

YQ​

[/TD]
[/TR]
[TR="class: underline1"]
[TD="bgcolor: transparent"]

Asia*​

[/TD]
[TD="bgcolor: transparent"]

Economy​

[/TD]
[TD="bgcolor: transparent"]

$145​

[/TD]
[TD="bgcolor: transparent"]

$155​

[/TD]
[TD="bgcolor: transparent"]

$10​

[/TD]
[TD="bgcolor: transparent"]

YQ​

[/TD]
[/TR]
[TR="class: underline1"]
[TD="bgcolor: transparent"]

Premium Economy​

[/TD]
[TD="bgcolor: transparent"]

$165​

[/TD]
[TD="bgcolor: transparent"]

$180​

[/TD]
[TD="bgcolor: transparent"]

$15​

[/TD]
[TD="bgcolor: transparent"]

YQ​

[/TD]
[/TR]
[TR="class: underline1"]
[TD="bgcolor: transparent"]

First / Business​

[/TD]
[TD="bgcolor: transparent"]

$190​

[/TD]
[TD="bgcolor: transparent"]

$215​

[/TD]
[TD="bgcolor: transparent"]

$25​

[/TD]
[TD="bgcolor: transparent"]

YQ​

[/TD]
[/TR]
[TR="class: underline1"]
[TD]

Honolulu​

[/TD]
[TD]

Economy​

[/TD]
[TD]

$175​

[/TD]
[TD]

$185​

[/TD]
[TD]

$10​

[/TD]
[TD]

YQ​

[/TD]
[/TR]
[TR="class: underline1"]
[TD]

Business​

[/TD]
[TD]

$175​

[/TD]
[TD]

$200​

[/TD]
[TD]

$25​

[/TD]
[TD]

YQ​

[/TD]
[/TR]
[TR="class: underline1"]
[TD="bgcolor: transparent"]

South
America​

[/TD]
[TD="bgcolor: transparent"]

Economy​

[/TD]
[TD="bgcolor: transparent"]

$260​

[/TD]
[TD="bgcolor: transparent"]

$285​

[/TD]
[TD="bgcolor: transparent"]

$25​

[/TD]
[TD="bgcolor: transparent"]

YQ​

[/TD]
[/TR]
[TR="class: underline1"]
[TD="bgcolor: transparent"]

Premium Economy​

[/TD]
[TD="bgcolor: transparent"]

$260​

[/TD]
[TD="bgcolor: transparent"]

$285​

[/TD]
[TD="bgcolor: transparent"]

$25​

[/TD]
[TD="bgcolor: transparent"]

YQ​

[/TD]
[/TR]
[TR="class: underline1"]
[TD="bgcolor: transparent"]

Business​

[/TD]
[TD="bgcolor: transparent"]

$160​

[/TD]
[TD="bgcolor: transparent"]

$335​

[/TD]
[TD="bgcolor: transparent"]

$75​

[/TD]
[TD="bgcolor: transparent"]

YQ​

[/TD]
[/TR]
[TR="class: underline1"]
[TD]

South Africa​

[/TD]
[TD]

Economy​

[/TD]
[TD]

$260​

[/TD]
[TD]

$260​

[/TD]
[TD]

[$25]​

[/TD]
[TD]

Base Fare​

[/TD]
[/TR]
[TR="class: underline1"]
[TD]

Premium Economy​

[/TD]
[TD]

$260​

[/TD]
[TD]

$260​

[/TD]
[TD]

[$50]​

[/TD]
[TD]

Base Fare​

[/TD]
[/TR]
[TR="class: underline1"]
[TD]

Business​

[/TD]
[TD]

$260​

[/TD]
[TD]

$260​

[/TD]
[TD]

[$75]​

[/TD]
[TD]

Base Fare​

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* Figures based on current fuel surcharge levels from Australia to Singapore only, as current fuel surcharge levels to Asia vary by route. The increase will be uniform across all routes to Qantas destinations in Asia with the exception of markets, where, due to the requirement of government regulatory approval, Qantas will increase the base fare rather than the fuel surcharge.


Domestic fare increases

From 15 August 2013, Qantas Domestic and QantasLink fares will also increase to reflect higher fuel costs. The amount of the fare increases will vary by route and fare class, but will average between 2 and 3 per cent.


Existing bookings

Any existing bookings, including published, retail net, private and wholesale fares, must be ticketed:

• On / before 13 August 2013 for international bookings
• On / before 14 August 2013 for domestic bookings,

otherwise un-ticketed bookings will be reassess and the new fuel surcharge levels will apply.


Servicing

• Customers holding an existing ticket that requires reissue on/after 14 August 2013 (international tickets) or on/after 15 August 2013 (domestic tickets) will have their ticket reassessed at the date of the change and reissue, and the new fuel surcharge will be applied per passenger per booking per applicable sector/journey, in addition to any difference in base fare, other taxes and or change fees. The Qantas International Ticket Reissue Policy applies, and is available via the Qantas Industry Sales Site at Qantas International Ticket Reissue Policy.

• Customers with existing tickets for travel on/after 14 August 2013 (international tickets) or on/after 15 August 2013 (domestic tickets), who are not making changes, are permitted to travel as booked and ticketed and do not require ticket reissue.

Tier structure and surcharges on the Qantas and Emirates network Following the recent shift to a tier structure for fuel surcharges depending on cabin for fares on the joint Qantas and Emirates network, Qantas will also apply these similar changes to its fares to the US and South America. This structure of charging a lower surcharge in Economy and Premium Economy compared with Business and First is already used by Qantas outside of Australia. Qantas’ fuel surcharges continue to be aligned with Emirates’ surcharges across the joint network. This alignment, first announced in June, resulted in Qantas reducing its surcharges on shared routes by an average of more than 30 per cent.
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[Aussie_flyer]

so they cut them one month then immediately increase them the next, what a nice gesture.

 

[Mal]

Wow. Similar spiel to the one they use for justifying credit card surcharge increases...

 

[dajop]

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[TD="colspan: 2"] Due to recent increases in fuel costs and the depreciation of the Australian dollar,[/TD]
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Of course when the AUD appreciated and sat around $1.05 for an extended period fuel surcharges were adjusted downwards.

 

[UP4014]

Having worked for Exxon in a past life, world oil prices are in USD so as the AUD slips...

However, a company like QF, or any airline, where one of their largest single costs is fuel would and should hedge their prices. Any airline which does not forward buy/commit and not have a USD account for this purpose is not doing the best by their customers or shareholders.

Trouble is many companies do the same, always quick to increase and often they do not have to because of their forward contracts, but painful when it comes to decreasing.

THis stuff is annoying.:evil:

 

[docjames]

It's impossible not to be cynical.

An "honest" company would just include the fuel cost in their airfares. Who'd have thought fuel would be a cost of running an airline?


Yes, I realise "everyone else does it" and that they can apply the fuel $$ to award seats are part of the reason they do this.


If QF wanted to look at why their reputation is constantly taking a battering, this is one illustration of how they lost trust with their consumers.



/rant over/

 

[UP4014]

Indeed, either airlines are BS'ing their customers or can't manage their risk register on one of their biggest costs. Poor form.

Matt

 

[Pleb Status]

AUD goes up against the USD, a small YQ increase.
AUD goes down against the USD, a bigger YQ increase.

Sounds right to me....... Or maybe not.

 

[sarvowinner]

Qantas to raise fares blaming higher fuel costs and fall in Aussie dollar - SMH

Qantas to raise fares blaming higher fuel costs, low Aussie dollar

Sigh, you make it very difficult to stay loyal.

 

[Mrmaxwell]

Re: Qantas to raise fares blaming higher fuel costs and fall in Aussie dollar - SMH

When did QF lower fuel surcharges due to the AU dollar going from $0.90 to $1.10? Or did that not happen?

 

[TheInsider]

Re: Qantas to raise fares blaming higher fuel costs and fall in Aussie dollar - SMH

When did QF lower fuel surcharges due to the AU dollar going from $0.90 to $1.10? Or did that not happen?

When did fuel from the local petrol station ever get 'cheaper' during this time?

 

[JohnK]

Re: Qantas to raise fares blaming higher fuel costs and fall in Aussie dollar - SMH

Wow!

Domestic airfares are now at their highest they have been in the 5 years I have been commuting and now another increase.

And no point wondering as the surcharges are not going to drop as quickly as they have risen.

 

[whatmeworry]

Re: Qantas to raise fares blaming higher fuel costs and fall in Aussie dollar - SMH

Remember the days when the QF brains trust would predict something like this and fuel hedge so they had a competitive over rivals... Then again this is the same QF that wants to get rid of ASA's.

 

[whatmeworry]

Re: Qantas to raise fares blaming higher fuel costs and fall in Aussie dollar - SMH

I reckon QF will be enhancing a lot things if the AUD keeps falling.
Qantas to raise fares blaming higher fuel costs, low Aussie dollar

 

[BD1959]

Re: Qantas to raise fares blaming higher fuel costs and fall in Aussie dollar - SMH

Questioning of the QF logic behind the recently announced fare & fuel surcharges: Qantas bound for perfect profitability storm - the Age.

Regards,

BD

 

[gwynne]

Re: Qantas to raise fares blaming higher fuel costs and fall in Aussie dollar - SMH

I've been LONE4 shopping for the last couple of weeks on oneworld's website and I've noticed the base fare has dropped ex-Sydney today from $3,700 and change to $3,509. Wonder if this is partially related.