This is serious stuff. Expect to hear similar from other players in the region over the coming days....
Quote:
Qantas To Increase Fares In Response To Record Fuel Prices
Sydney, 22 May 2008
Qantas announced today that it would increase its international and domestic fares for tickets issued in Australia on or after 4 June.
The Chief Executive Officer of Qantas, Mr Geoff Dixon, said Qantas would increase international fares by approximately 4 per cent and domestic fares by approximately 3 per cent. This followed increases of approximately 3 per cent for international fares and 3.5 per cent for domestic fares earlier this month.
He said the increases were unavoidable given the continuing high cost of oil.
"Oil and jet fuel prices continue to break records, with West Texas Intermediate spot crude oil passing US$134 a barrel overnight and Singapore Jet Fuel today trading at nearly US$166 a barrel," Mr Dixon said.
Mr Dixon said Qantas had increased its fuel hedging and now had cover for 59 percent of expected crude oil requirements in 2008/09 at $US111.81 a barrel WTI, inclusive of option premium.
"Despite our hedging activities, fare increases, surcharges, and strong focus on managing costs across our operations, we will not cover these higher fuel costs, which at current prices will add more than A$2 billion to our fuel bill in 2008/09.
"We are continuing to target further efficiency improvements which now include a review our network and schedules of Qantas, QantasLink and Jetstar."
Issued by Qantas Corporate Communication (Q3766)
Email: qantasmedia@qantas.com.au
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http://www.qantas.com.au/regions/dyn...08/may08/Q3766