Fuel Surcharge going up for International flights

[Mal]

Applies to tickets issued on or after 17Jan08.

UK/Europe +$25 (now $210)
Mainland USA/Canada/South America/South Africa/India +$20 (now $165)
Asia Pacific/Honolulu +$15 ($120)
New Zealand +10 ($70)

Qantas increases international fuel surcharges | Herald Sun

 

[serfty]

Heres the Fairfax view:

• Qantas ups international fuel surcharges - Breaking News - Business - Breaking News

"The price of West Texas Intermediate crude oil passed $US100 ($A115.08) a barrel last week, and Singapore Jets Fuel is currently trading at around $US114 a barrel," Mr Borghetti said.

Mr Borghetti said that, at this stage, there would be no change to the airline's existing Australian and New Zealand domestic charges.

Qantas' domestic surcharge is $26.

 

[JohnK]

This is starting to get well beyond a joke.

No need for fuel surcharges. The rise in cost of fuel is part of doing business and therefore should be reflected in the cost of the base airfare. By the way I don't mind paying more for airfares if it costs more to supply the airfare. I detest the airlines being allowed to do it in a back handed way by calling it a tax like fuel surcharge.

Doesn't anyone have the guts to stop this farce? IATA? ACCC? Government?

 

[SeaWolf]

As far as I know Emirates is the only airline that folds it into the base fare.

 

[JohnK]

Not important to us Australians but I believe Aegean Airlines includes the fuel surcharge in the base airfare.

 

[Dave Noble]

As far as I know Emirates is the only airline that folds it into the base fare.

All US carriers are required to include it as part of the fare

Dave

 

[turtlemichael]

It's accepted wisdom here that it's a bad thing to have separately identified fuel fines. QF is regularly criticised. The major effect seems to be that those travelling on an award ticket booked through QF have to pay the surcharge.

However, logic says that if the surcharge was rolled into the price of a ticket it would have to be rolled in at a higher rate to cover the loss of the surcharge income on award ticket redemptions.

And indeed, if Fred Bloggs earns his award ticket from buying his groceries at Woolies on his credit card rather than as a reward for flying QF regularly, why should I as a loyal QF customer have to pay a higher airfare to cover his flight?

For as long as it is possible to maintain the emotive argument that award redeemers are really getting something for free, QF and others are on a winner. Even more so now that many fuel surcharges are reaching a high proportion of the trip cost.

 

[NM]

All US carriers are required to include it as part of the fare

Dave

That is true for domestic fares. But they still add fuel fines for some international sectors.

 

[Yada Yada]

For as long as it is possible to maintain the emotive argument that award redeemers are really getting something for free, QF and others are on a winner. Even more so now that many fuel surcharges are reaching a high proportion of the trip cost.

Yep, exactly why points are best used for upgrades.

 

[Dave Noble]

That is true for domestic fares. But they still add fuel fines for some international sectors.

They have a fine but it gets added to the fare, not to taxes ime. e.g. with ATW tickets they add the 2 fines to the base fare and then quote the taxes on ones I have arranged

As an example, for a one way ORD-LHR in fare basis H2

Expert Flyer lists the base base as being USD807
AA has a fuel surcharge of USD91 on Transatlantic Sector
When making a booking on the AA site, it lists the base fare as USD898 plus taxes of USD22.40 so has included the fuel surcharge into the fare quote


Dave

 

[StevePER]

However, logic says that if the surcharge was rolled into the price of a ticket it would have to be rolled in at a higher rate to cover the loss of the surcharge income on award ticket redemptions.

And indeed, if Fred Bloggs earns his award ticket from buying his groceries at Woolies on his credit card rather than as a reward for flying QF regularly, why should I as a loyal QF customer have to pay a higher airfare to cover his flight?

Unfortunately the increasing cost of flights (regardless of whether it's through a fuel surcharge or increased fares) means that over time a mileage-based frequent flyer program becomes less favourable to frequent flyers and more favourable to frequent spenders. Flying enough times to earn points for an award flight is becoming more expensive, while spending $1 on a credit card is getting easier due to inflation.

I suspect that a fuel surcharge makes little difference in this respect.

 

[Mal]

Tiger don't charge a fuel surcharge! (According to one article today, that's a good portion of the reason why Qantas didn't up domestic surcharges as well!)

 

[JohnK]

Is this the real reason for the increase in fuel surcharges? It is all about bottom line with the increase in oil prices just an excuse to increase airfares....

Qantas to get $130m from levy: analyst

Steve Creedy, Aviation writer | January 09, 2008

A QANTAS decision to boost international fuel levies by up to 17 per cent will allow the airline to reap an additional $130 million from passengers, according to analysts.

Qantas announced on Monday that it would raise fuel surcharges by between $10 and $25 per one-way flight on international services. Jetstar increased its surcharge by $10 on one-way flights to Asia and the Pacific.

The rises mean passengers will now pay $410 in fuel surcharges for a return flight to London.

This is despite guidance that the airline's pre-tax profit will be 40 per cent higher than last year, reaching another record.

More...

 

[Reggie]

Is this the real reason for the increase in fuel surcharges? It is all about bottom line with the increase in oil prices just an excuse to increase airfares....

Its the fare increase you can give to pax with out calling it a fare increase, so the travelling community dont complain about the raising salaries and bonus of QF managment,

 

[dajop]

Its the fare increase you can give to pax with out calling it a fare increase,

Well often, it is not used to increase fares. In the past (it will be interesting to see what happens this week), the lead in "base" fares have been adjusted downwards to account for the increase in surcharge (don't think this happens to the higher & business/first fares though). Instead it just increases the cost of an award booking (neat), and at the same time increases the non-commissionable component of airfares being sold by TA's (double neat) (if there are any left being paid commissions) and lastly increases QF's take on round the world and circle fares (at least those issued in Australia).

 

[jpk]

In The Australian today, business section, article on the QF share price taking a nosedive, Peter Gregg says they are hedged up but the recent rise was a catch up. Hmmm.....

"Mr Gregg conceded that investors could be nervous about fuel prices but said the airline was well covered until June, with some cover beyond that. He said a recent fuel surcharge rise had been a "catch-up''.

Qantas had been boosting hedging when oil prices dipped and would pick up more as it entered fiscal 2009."

Qantas dives on Merrill's sell call | NEWS.com.au Business

 

[NM]

"Mr Gregg conceded that investors could be nervous about fuel prices but said the airline was well covered until June, with some cover beyond that. He said a recent fuel surcharge rise had been a "catch-up''.

Hmm, if it really was a "catch up" then why was it linked at the time to the rising oil price passing through the US$100/barrel mark . It seems different people at Qantas have different views about why they needed increase the fuel fines.

 

[jpk]

Hmm, if it really was a "catch up" then why was it linked at the time to the rising oil price passing through the US$100/barrel mark . It seems different people at Qantas have different views about why they needed increase the fuel fines.

Indeed. My "hmmmmm" conveyed my deep suspicions about this excuse. Especially when the exchange rate has been favourable. I can't help but feel that fuel surcharges are seen as an easy way of generating plenty of black on the bottom line.

 

[Mal]

Indeed. My "hmmmmm" conveyed my deep suspicions about this excuse. Especially when the exchange rate has been favourable. I can't help but feel that fuel surcharges are seen as an easy way of generating plenty of black on the bottom line.

Yep, there's something very fishy happening at Qantas Headquarters, and no it's not Neil Perry designing the new F menu...

 

[Baysider]

I really think that fuel surcharges are little more than a con job, and that all airlines should simply adjust the base fare. Its probably being wishful that it might happen, but I'd love to see a boycott of airlines which apply a fuel surcharge. Personally, I'm quite happy to boycott Qantas until they publish "true" fares.