Qantas to raise overseas fuel surcharges as costs rise

Qantas Airways is raising its international fuel surcharges for tickets issued on or after August 9.

Qantas chief executive Geoff Dixon said there would be no change to Australian and New Zealand domestic surcharges.

"Along with most airlines, Qantas has been closely monitoring the upward movement in oil and jet fuel prices over recent months, and with Singapore jet fuel now nearly US$90 a barrel, we have adjusted our international surcharges to or below their August 2006 levels," Mr Dixon said.

The new one way fuel surcharges from Australia will be: A$185 (US$157.67) for the UK and Europe flights, up from A$170; US, Canada, South America, South Africa and India, A$145 up from A$133; Asia, Pacific, Honolulu, A$105 up from A$100; and New Zealand, A$60 up from A$55.

"Should the fuel prices drop, we will reduce the surcharges, as we have done on two separate occasions in the past ten months. The price of jet fuel has increased by more than US$17 per barrel since the last adjustment," said Mr Dixon.

"Despite our robust fuel hedging policy and surcharges, we are nowhere near covering the additional cost to our business of the high fuel prices. At current forward prices, and after hedging, the Qantas Group's fuel bill for 2007/08 will be more than A$300 million higher than 2006/07, despite the benefit of the stronger Australian dollar."