QF Fuel Surcharges... May go down when fuel below $60/barrel for a month

[kyle]

Maybe the Qantas domestic fuel surcharge will come down by 3%, which is the amount of the base fare increase.

 

[JohnK]

For Qantas to save face and stop being hounded they would need to fully reverse the increase to the fuel surcharges in August.

As I understood from the article QF is under tremendous pressure from everywhere to reduce fuel surcharges. I would not be surprised if the fuel surcharge dropped even further. But that is not to say that the airfares would not be adjusted to reflect changes in operating costs.

Norm Crothers deputy chief executive of the Australian Consumers' Association said fuel surcharges should be kept in line with the cost of oil.

"Surely it must come down sometime, if it was put on purely because fuel prices cost more. It now costs less so it must come off at some point." he said.

Federal treasurer Peter Costello last month called for the airlines to lower their fuel levies.

 

[Mal]

According to the PDF I referenced above, Singapore Jet Fuel prices are now back to Feb 06 levels.

Shouldn't Qantas be rolling back fuel surcharges to the ones that were in operation then?

Hmmm. Somehow I don't think Qantas is playing fair. It has definately affected my International Qantas bookings - and made me think twice about choosing Qantas domestically.

 

[JohnK]

Shouldn't Qantas be rolling back fuel surcharges to the ones that were in operation then?

You are absolutely right Mal. What can we do about it?

Hmmm. Somehow I don't think Qantas is playing fair. It has definately affected my International Qantas bookings - and made me think twice about choosing Qantas domestically.

You are not alone. I am not happy paying A$970 for an airfare that contains A$350 in taxes and surcharges, of which A$230 is fuel surcharges. This airfare will reduce by A$30 next week. It is ludicrous!

 

[Yada Yada]

You are absolutely right Mal. What can we do about it?

Do as Magda does... Let's fly Deathstar! :shock: :mrgreen:

 

[Yada Yada]

Finally, a bit of relief from QF:

Source: Qantas cuts fuel surcharge on international fares - 20 Oct 2006 - Business

Qantas cuts fuel surcharge on international fares

Friday October 20, 2006

SYDNEY - Qantas Airways will cut its fuel surcharges on international fares from next week. The cut applies to airfares originating out of Australia only.

However, chief executive Geoff Dixon said the airline would continue to monitor fuel prices before cutting the surcharges on Australian domestic fares.

The carrier said the cost of fuel remained its biggest challenge but still upgraded earnings guidance for fiscal 2007 after announcing 340 jobs would be cut.

Glad I haven't ticketed my next international flight yet, although the cut is likely to be bugger-all for SYD-SIN!

Also just saw this: Qantas can't afford increased security costs. 20/10/2006. ABC News Online

Qantas can't afford increased security costs

Qantas says it cannot continue to carry the cost of increased security measures that have now cost more than $1 billion since the September 11, 2001 attacks.

Company chairwoman Margaret Jackson told the airline's annual general meeting (AGM) in Sydney yesterday that the airline now employs, both directly and indirectly, the equivalent of a sizeable police force.

"The cost of security burden will grow because of specific measures for airports and airlines, which are mandated by the Australian and other governments," she said.

Hmmm... wonder if there will be a security surcharge implemented soon!

 

[JohnK]

Hmmm... wonder if there will be a security surcharge implemented soon!

Yes and give it a code of SOS! We are giving QF too many ideas. Another fudge bucket which can conveniently be increased every time the fuel surcharge is decreased.

 

[AnonymousCoward]

Finally, a bit of relief from QF:

But at the same time, I note that domestic prices seem to have gone up...

"Rack" rates for full economy Sydney -> Melbourne are $410 each way now.

 

[JohnK]

Qantas To Reduce Fuel Surcharges

Sydney, 19 October 2006

Qantas said today it would reduce its international fuel surcharges for tickets issued on or after Tuesday, 24 October 2006.

More...

Am I reading the statement correctly that fuel surcharges will decrease on or after Tuesday 24 October 2006. Which is it on or after?

I have been monitoring SIN-SYD-SIN airfares over the last few months and I can definitely say that the airfare has not decreased. Base airfare has remained steady in this time.

 

[NM]

Am I reading the statement correctly that fuel surcharges will decrease on or after Tuesday 24 October 2006. Which is it on or after?

I have been monitoring SIN-SYD-SIN airfares over the last few months and I can definitely say that the airfare has not decreased. Base airfare has remained steady in this time.

I think it is pretty clear. Any tickets issued on the 24th of October, and any tickets issued after the 24t of October will be charged the new fuel fine rates.

 

[JohnK]

I think it is pretty clear. Any tickets issued on the 24th of October, and any tickets issued after the 24t of October will be charged the new fuel fine rates.

So if today is 24 October 2006 and the international airfares are still the same?

QF has not had a chance to update new airfare pricing? Why? It clearly states on or after 24 October 2006!

 

[serfty]

So if today is 24 October 2006 and the international airfares are still the same?

QF has not had a chance to update new airfare pricing? Why? It clearly states on or after 24 October 2006!

Maybe they haven't updated their online reference tables as yet ...

 

[JohnK]

Maybe they haven't updated their online reference tables as yet ...

Guess what?

I just looked again now and the SIN-BNE-SYD-PER-SIN airfare for the dates I have been researching is now SG$1121, it was SG$1123 last night. The SIN-ADL-SYD-PER-SIN airfare for the same dates is now SG$1124, it was SG$1126 last night.

It appears that the return airfares have dropped by SG$2. What the....

 

[NM]

Guess what?

I just looked again now and the SIN-BNE-SYD-PER-SIN airfare for the dates I have been researching is now SG$1121, it was SG$1123 last night. The SIN-ADL-SYD-PER-SIN airfare for the same dates is now SG$1124, it was SG$1126 last night.

It appears that the return airfares have dropped by SG$2. What the....

But what is the YQ component of the taxes in those airfares. Has that changed to reflect the new fuel fines?

 

[JohnK]

But what is the YQ component of the taxes in those airfares. Has that changed to reflect the new fuel fines?

Sorry I don't know. I am using the QF website and I don't think it has a breakdown anymore. The base airfare, SG$718, is the same as it has been over the last few months.

It would be very sly of QF to decrease the fuel surcharge as promised but then increase base airfare.

 

[NM]

It would be very sly of QF to decrease the fuel surcharge as promised but then increase base airfare.

I would prefer to see them remove the fuel surcharge altogether and add the amount to the base fare. I really don't are what fare price they charge - the market will determine if it is too high or too low. So if they reduce the fuel surcharge and increase the fare then so be it. The base fare should be whatever QF determine the passengers are willing to pay.

 

[serfty]

Actually I noticed that as the Fuel Fines went up, most International base fares varied downward.

This did not happen for domestic fares.

Another example of the effect of competition ...

 

[JohnK]

It appears that the fuel surcharge has gone down for award bookings.

I looked at SYD-SIN award 2 weeks ago and the taxes & surcharges were $176.38 and looking at same award today the taxes & surcharges are $166.38 which is the $10 difference announced last week.

I think it now time to call QF Singapore and get new quotes to compare with quotes I got from them last month.

 

[oz_mark]

I've long had the opinion that the entry level (red-e deal) fares have a pride determined, and the components are calculated backward from that point. The components may vary around a little, but the overall stays the same. Looking at red-e-deal fares may not give you an accurate idea of what has happened under the covers.

Less true at the higher fares.

 

[JohnK]

I called QF Singapore and got a quote that had the same taxes & surcharges quoted last month. I mentioned that fuel surcharges were due to drop on Tuesday 24 October 2006 and although they had heard of this could not do anything about it as it was not showing on their booking screens.

I then called QF in Sydney and explained the situation. The kind lady promised to call back 10 minutes later with an explanation or solution. It is not very clear but her explanation was that the fuel surcharges have only gone down for tickets issued in Australia, although this is not appearing very clearly in the news article.

I am trying to purchase a ticket issued in Singapore.

Qantas To Reduce Fuel Surcharges

Sydney, 19 October 2006

Qantas said today it would reduce its international fuel surcharges for tickets issued on or after Tuesday, 24 October 2006.

The Chief Executive Officer of Qantas, Mr Geoff Dixon, said the new one-way fuel surcharges for services from Australia would be:

More...

I have no idea where the article says issued in Australia only. Yes it mentions "for services from Australia" but this is not the same.

Is this answer good enough or should I leave it alone. Don't know how I am going to win anyway!