Qantas stands firm on fuel surcharge

Qantas boss Alan Joyce appearss unlikely to make more changes to the airline's fuel surcharges despite a slide in world oil prices.

Qantas appears unlikely to make more reductions in its fuel surcharges on tickets despite the slide in world oil prices.

Qantas in January cut fuel surcharges on its international tickets in a move that saves frequent flyers money, but did not lower airfares.

Instead the airline restructured its prices so that base fares were increased to compensate for the lower fuel charge.

Chief executive Alan Joyce says Qantas' first half profit was boosted by a $33 million benefit from lower fuel prices thanks to the slide in oil prices, and more savings were expected.

But he said fuel prices remained volatile.

He also noted that international airfares had dropped 30 per cent and domestic by 20 per cent in the past decade.

"So the consumer has never had it better," he told reporters on Thursday as Qantas reported it had swung back into profit.

Under the changes to its fuel surcharges, Qantas passengers would only save if they booked tickets with frequent flyer points.

The decision to keep total fares prices the same contrasts with Virgin Australia's announcement that it would reduce economy ticket prices to the US by $40 after moving to include fuel surcharges into the base fare.

Qantas' interim net profit was $203 million, while its underlying profit was $367 million, its best first-half performance since 2010 and an improvement of $619 million compared to the same time last year.


Share

2 min read

Published

Updated

Source: AAP


Share this with family and friends


Get SBS News daily and direct to your Inbox

Sign up now for the latest news from Australia and around the world direct to your inbox.

By subscribing, you agree to SBS’s terms of service and privacy policy including receiving email updates from SBS.

Download our apps
SBS News
SBS Audio
SBS On Demand

Listen to our podcasts
An overview of the day's top stories from SBS News
Interviews and feature reports from SBS News
Your daily ten minute finance and business news wrap with SBS Finance Editor Ricardo Gonçalves.
A daily five minute news wrap for English learners and people with disability
Get the latest with our News podcasts on your favourite podcast apps.

Watch on SBS
SBS World News

SBS World News

Take a global view with Australia's most comprehensive world news service
Watch the latest news videos from Australia and across the world