By Mike Cherney and Alice Uribe
SYDNEY–Qantas, Australia’s biggest airline, has announced plans to raise fares in order to offset the impact of increasing fuel costs. The airline cites ongoing tensions in the Middle East and a weaker Australian dollar as factors that are expected to keep fuel prices high.
According to a statement released on Friday, Qantas will implement an average fare increase of 3.5%, while its budget airline, Jetstar, will raise fares by an average of 3%.
While the fare adjustments will help mitigate the rise in fuel costs, Qantas acknowledges that they will not completely cover the increase. The remaining cost burden will be absorbed by the airline, which has been managing the higher prices until now.
Despite the fare hike, Qantas assures customers that average ticket prices will still remain below the peak levels witnessed in late 2022.
Last month, Qantas had already signaled that elevated fuel prices would result in a higher fuel bill for the first half of fiscal 2024, and had expressed its intention to take action accordingly.