Qantas apologises and then warns of fuel related fare hikes

New Qantas CEO Vanessa Hudson says the carrier needs to do better.

Qantas has warned that air fares may rise if fuel prices continue to stay high following a $200 million hike in fuel costs.

Fuel prices have increased by 30 per cent since May this year, including 10 per cent in the last month alone, driven by “a combination of higher oil prices, higher refiner margins and a lower Australian dollar”, according to Qantas.

But Qantas will monitor fuel prices over the coming months and if they continue to stay high it will “look to adjust its settings”.

“Any changes would look to balance the recovery of higher costs with the importance of affordable travel in an environment where fares are already elevated,” Qantas said.

New Qantas CEO Vanessa Hudson also said the carrier will spend an extra $80 million to boost its customer experience. The announcement follows Hudson’s video apology to its customers, saying “we understand we need to earn your trust back”.

“I know that we have let you down in many ways and for that, I am sorry,” she said.

“We haven’t delivered the way we should have. And we’ve often been hard to deal with.

“We understand why you’re frustrated and why some of you have lost trust in us.”

Among the changes are more frequent flyer seats, extra staff in call centres and a review of its customer policies.