Qantas Hikes International Fuel Surcharges

Qantas Airways, Australia's largest airline, said on Monday it would raise its fuel surcharges on international routes, the second increase in less than a year.

The airline said the increases of as much as 16.7 percent, to take effect from Jan. 17, were in response to record fuel prices.

Qantas passenger jets parked at their terminal at Sydney Airport.
Mark Baker
Qantas passenger jets parked at their terminal at Sydney Airport.

The price of crude oil recently touched $100 a barrel, and Qantas said the Singapore jet fuel price was currently trading about $114 a barrel.

Passengers on international flights from Australia to Britain and Europe will pay a surcharge of A$210, up from $185, while flights to Asia would attract a surcharge of A$120 up from $105.

Surcharges on flights to New Zealand increase to A$70 from A$60.

A Qantas spokesman said it was the first increase in international fuel surcharges since August last year, when Singapore jet fuel was trading about $90 a barrel.

At this stage there would be no change to its domestic surcharges, Qantas said.

Qantas shares last traded down 3.9 percent at $5.23 in a broader market down 2.2 percent.

Last month, Virgin Blue Holdings increased its fuel surcharge for domestic flights by 26 percent, its first increase in three years. Virgin Blue is 62 percent owned by Toll Holdings.