As rising fuel costs loom large on the horizon, Qantas and Jetstar, leading airlines in the industry, have decided to adjust their fare prices, effective from Friday. The proposed increase in flight costs is seen as a countermeasure to combat the escalating rates of fuel.
An average surge of 3.5 per cent is expected to impact the fares of Qantas flights, while its lower-cost subsidiary, Jetstar, anticipates a climb of about 3 per cent. The actual magnitude of the hike will, however, differ based on variables like route and cabin class.
These changes will predominantly affect flights booked post October 27, leaving fares booked prior to Friday untouched.
Qantas Group, in an official communique, clarified that their fare increment does not mirror the full rise in operational costs. The company intends to carry on shouldering a part of the price surge, rather than transferring the entire burden to their customers.
The ongoing skirmish between Israel and the Gaza Strip, contributing to heightened geopolitical strains, has triggered a steep ascent in crude oil prices, reaching US$85.50 per barrel (AU$136.28) on Thursday.
“A sustained hike in fuel prices inevitably exerts upward pressure on fares,” an official spokesperson from Qantas acknowledged. “While we have managed to absorb the recent fuel cost escalations, the prevailing tensions in the Middle East and larger economic matters, notably a devalued Australian dollar, forecast that fuel prices are likely to remain high for a foreseeable period.”
Changes to pricing will come into effect for bookings made from 27 October 2023, thereby enabling passengers to arrange their travel plans in anticipation of the fare hike.
Despite the increase, the average fare prices are reportedly still trailing the zenith reached towards the end of 2022. Qantas Group remains firmly committed to maintaining affordability in travel, promising to roll out regular sales and offer special deals.
In a strategic move prior to the fare hike, Qantas unveiled a 72-hour flash sale, presenting discounted prices for over 60 domestic routes. This sale runs until 11.59 pm on Thursday.
