Qantas to raise prices, citing fuel cost, carbon tax

Qantas will raise surcharges and fares from mid-February.

Qantas will raise surcharges and fares in response to high fuel prices and the impact of carbon taxes in Europe and Australia.

Under the plan, which goes into effect on February 15, fuel surcharges on international flights will go up by as much as $60 for one-way tickets to the US and Europe, raising the surcharge to $310 and $350 respectively. The surcharge for flights to Asia and Hawaii will rise by $20 to $165, while the surcharge for South America and South Africa will rise $40 to $240.

The airline will also raise domestic fares by 2.5 per cent, amounting to a $5 increase on a one-way ticket between Sydney and Melbourne.

Qantas said the increases are not expected to fully cover the soaring cost of fuel. The Qantas Group spent $2.2 billion on fuel during the second half of 2011, an increase of roughly $450 million over the previous year, and the airline said fuel prices for the financial year to date were at their highest levels since 2007/08.

Qantas had previously said the carbon tax would cost it an estimated $115 million next financial year.

“Higher fuel costs and carbon pricing will impact future ticket prices for Qantas and Jetstar passengers travelling domestically and internationally,” the airline said in a statement. Jetstar has announced domestic fare increases of $10 from July 1.