Qantas is to add an A$40 (R330) charge onto the current fuel surcharge levy of A$200 (R1652) for passengers travelling on its Johannesburg service.
The adjusted levy will come into effect from 15 February and is in line with adjustments made across the airline’s international route network.
The airline cited consistently high fuel prices as well as the European Union and Australian carbon pricing schemes’ impact on future ticket prices for the adjustment to its international fares. However, it is the first increase introduced by the airline since April 2011.
“Jet fuel is Qantas’ biggest operational cost and market prices remain consistently high. The Qantas Group’s jet fuel cost for the six months to December 31, 2011 was A$2.2-billion, an increase of around A$450-million compared with the previous year. Average year to date jet fuel prices are at their highest level since 2007/08,” the airline explained.
Increases have also impacted domestic Qantas and QantasLink fares. These vary by route and fare class but average 2.5 percent and came into effect last week (9 February).
An increase of A$2 on the fuel surcharge for domestic Qantas Frequent Flyer Classic Award redemptions (from A$10 to A$12) will also be implemented.
While fuel surcharges, price increases and hedging are being used to mitigate the impact of fuel prices, Qantas added these measures would not fully recover the costs.
The airline further estimated it would be required to pay in the region of A$2.3-million for the necessary allowances determined by the EU emissions trading scheme to cover a proportion of the carbon emissions generated by their flights to and from the EU.
Therefore fares booked in Australia for travel to and from London and Frankfurt will be subject to a surcharge of A$3.50 each way and per applicable sector as of 15 February 15.
When the Australian carbon pricing system comes into effect on July 1, a one-way carbon surcharge for Qantas and QantasLink services will be applied based on flight sector and length but range from A$1.82 – A$6.86 (one way GST inclusive). These surcharges will take effect for tickets booked on or after February 15 for travel on or after July 1.
Jetstar will increase all domestic lead-in fares by A$10 to counter the cost inputs for both fuel and carbon trading schemes. These increases will also take effect on 15 February for travel from 1 July.