Qantas fares to rise as fuel costs bite

qantas

Qantas has warned it will have to raise ticket prices across both domestic and international services to cover the rise in fuel costs.

Domestic fares are forecast to increase up to 10 per cent while international fares will see a 20 per cent hike on some routes.

The news came as the carrier revealed a whopping $1.86 billion statutory before tax loss, which was some $85 million more than the previous year.

Qantas boss Alan Joyce said the hike in fuel prices was “a cost we can’t digest given what we’ve been through,” with this year’s fuel bill some $1 billion more than 2019.

“We have to pass that on because we can’t digest that after $7 billion of losses in three years,” he said.

“I think a lot of airlines around the world are doing the same thing.”

While Qantas isn’t the only airline ramping up prices to cover fuel costs the timing isn’t great, with ongoing complaints around flight delays, baggage losses and poor service.

The carrier also said it would have to cut back on the number of flights by around 10 per cent in repose to continuing operational challenges.

But to soften the blow, Qantas also announced $50 travel credit for frequent flyers.