Qantas, Jetstar end fuel surcharges

AAP - Qantas Airways Ltd will remove domestic fuel surcharges from New Year's day.

Qantas said the $18 per sector fuel surcharge would be axed for tickets issued on or
after Thursday, January 1.
Executive general manager John Borghetti said the surcharge would be removed for all
Qantas domestic and QantasLink bookings.
Qantas last week announced that it had reduced its international and domestic fuel
surcharges for the third time in recent months because of falling oil prices.
But Mr Borghetti said international surcharges would remain due to its higher fuel
costs associated with its overseas operations.
Despite recent falls in the oil price, the airline's fuel costs were still greater
than when surcharges were first introduced in May 2004, he said.
Qantas maintains that the group's fuel bill this financial year would still be $400
million higher than in 2007/08.
"Fuel remains a major cost to our business and, even with surcharges, we have
absorbed significant amounts of the additional record fuel costs incurred in recent
years," he said.
"Prices remain volatile.
"Oil was trading as low as $US32.40 ($A47.14) on December 19, but today back up to
$US40 ($A58.20) a barrel, an increase of more than 20 per cent."
Mr Borghetti said jet fuel refining margins paid by airlines were also higher, about
$US17 ($A24.73) now compared to about $US5.40 ($A7.86) in May 2004.
However, last week's international fuel surcharge reduction had made some flights a
little more affordable.
The fuel surcharge for a one-way ticket from Australia to the United Kingdom and
Europe has been cut by $30 to $160.
The surcharge was for one-way flights to the Americas, South Africa and India fell
by $20 to $130.
Budget airline Jetstar also said it would drop the domestic fuel surcharge from
January 1, 2009 in response to lower oil and jet fuel prices.
Jetstar has already announced reductions to long-haul international fuel surcharges,
the short-haul Asian fuel surcharge and the surcharge on trans-Tasman routes.
"We continue to monitor oil and jet fuel prices closely with fuel surcharges on
international services remaining under review," Jetstar group general manager,
commercial, David Koczkar said.
Qantas shares closed four cents lower at $2.52.