As the cost of fuel skyrockets amid conflict in the Middle East, Qantas and Jetstar have increased airfares by an average 3.5 per cent and three per cent respectively from today.
Those who booked flights before today would have missed the price rise, which will vary by route and cabin.
A Qantas Group spokesperson said the company did not pass on the entire increase in operating costs to customers and will still be absorbing some of the price hikes.
“As flagged last month, sustained increases in fuel prices are placing upward pressure on fares,” the spokesperson said.
“The Qantas Group has absorbed recent fuel cost increases but, given current tensions in the Middle East and broader economic factors including a weaker Australian dollar, the price of fuel is expected to remain elevated for some time.
“As a result, Qantas will increase fares by an average of 3.5 per cent to recover some of this higher cost going forward while continuing to absorb the remainder. Similarly, Jetstar will increase its fares by an average of 3 per cent.”
The airline says that the average fares remain below the peak levels witnessed in late 2022 even “following this adjustment”.
“The Group is acutely conscious of the importance of affordable travel and will continue to have regular sales and special offers,” they said.
Qantas ran a snap 72-hour sale to more than 60 domestic routes that ended at 11.59pm last night and a five-day 50 per cent off “Points Plus Pay” sale, which ends today.
According to AFR, tension in the Middle East risks pushing crude oil prices back to US$100 (nearly AU$160) per barrel.
As of Thursday, oil prices were US$85.50 per barrel (AU$136.28).
Other airlines to follow?
A source at Virgin Australia told Karryon recent increases in fuel prices had put “significant pressure on costs for Australian airlines”.
“When fuel prices remain high, airfares are likely to be higher and we continue to monitor these factors closely,” they said.
“Virgin Australia continues to work hard to ensure that great value and choice remain available to Australian travellers.
“We are using every available aircraft to meet high demand and are taking delivery of additional aircraft this year and into 2024 to put even more capacity into the Australian market.
“Just this week we launched a 72-hour sale with fares from as low as $86 one-way as well as a double Status Credits offer for Velocity Frequent Flyer members.”
A Rex spokesperson told Karryon the airline is “constantly adjusting our fares in response to external costs like fuel, foreign exchange and other inflationary pressures”.
Yesterday, Qantas announced the launch of a new international route and extra seats on Hawaiian flights.
Qantas Group also recently appointed Rachel Yangoyan as the new CEO of its regional and charter arm, QantasLink.
Last week, the group added new Chief People Officer Catherine Walsh and announced that Qantas Loyalty CEO Olivia Wirth would step down from the role she has held since 2018 effective February 2024.
