Air Freight News

Qantas to raise fares and cut flights due to high fuel prices

Qantas Airways Ltd. is pushing up fares and making deeper cuts to scheduled flights in Australia to offset months of higher fuel costs.

A sustained increase in fuel prices means Qantas needs to “rebalance capacity and fares,” the airline said Thursday. Domestic services in July and August will fall to 103% of pre-Covid levels from 107%. Qantas had already cut flying in Australia next quarter to 110% of pre-pandemic volumes from a planned 115%.

Russia’s invasion of Ukraine has sent oil prices soaring, with crude above $100 a barrel for the majority of the time since early March. Sydney-based Qantas had warned it might have to raise fares if higher fuel costs persisted. The airline didn’t elaborate on airfare changes.

Cutting flights means Qantas can fill more of the seats on its remaining services, driving up revenue on those routes without buying much additional fuel. Every $4 jump in the oil price adds 1% to air fares, Qantas has said.

Qantas rose as much as 2.6% Thursday. The shares are up about 9% this year.



© Bloomberg
The author’s opinion are not necessarily the opinions of the American Journal of Transportation (AJOT).

Similar Stories

Europe’s travel woes deepen as strikes add to scrapped flights

A wave of airline strikes and flight cancellations is deepening Europe’s transport crisis, disrupting travel plans just as the region’s peak summer season gets under way.

View Article
Lufthansa sees no end to disrupted flights until 2023, Welt says

Deutsche Lufthansa AG doesn’t expect flight operations to return to normal until next year, after cutting 3,100 flights from its summer schedule due to staff shortages.

View Article
Dutch to cut Amsterdam Airport’s capacity over noise pollution

The Netherlands is planning to cut Schiphol airport’s capacity by about 20% next year to reduce noise pollution, a move the global airline lobby described as a “shocking blow” to…

View Article
Flight attendant case tests if state labor laws trump FAA rules

A California law requiring rest and meal breaks for workers has become a fierce battleground between airlines and flight attendants that may soon draw in the US Supreme Court.

View Article
WorldACD: Trends for the past 5 weeks (wk 24)
View Article
Air India considers hiring retired pilots ahead of big jet order

Air India Ltd. is considering hiring retired pilots, according to an airline official with knowledge of the matter, as the money-losing carrier seeks to bolster staff to prepare for one…

View Article