- Qantas to raise ticket prices
- Move the angry flyer
Qantas ticket prices are set to soar as the national carrier passes on higher costs to customers.
Qantas domestic and international ticket prices will rise by 3.5% from October 27, putting added pressure on cash-strapped Australians.
The national airline said it had “no choice” but to raise prices as it struggles to absorb rising fuel costs, a move that has angered customers.
“Apparently they’re taking issue. Australians don’t like it,” one frustrated woman told 9News.
Jetstar Airways will also increase its price by 3% from next week.
This increase could make it difficult for families to gather around Christmas, with the holiday season just around the corner.
Qantas said in a statement that it could no longer absorb rising fuel costs caused by factors such as continued conflict in the Middle East and the weakening Australian dollar.
The company foreshadowed the change late last month, saying in an ASX announcement that fuel prices have “increased by around 30% since May 2023, including a 10% jump since August.” ” he said.
“If this holds, the group’s fuel costs for the first half of 2024 are expected to increase by approximately $200 million post-hedging to $2.8 billion,” the statement said.
“The group will continue to absorb these higher costs, but will continue to monitor fuel prices in the coming weeks and consider adjusting settings if current levels remain.” , which will seek to balance the importance of affordable travel in an environment where fares are already soaring with a recovery from rising costs. ”
Qantas, which owns Jetstar, posted an impressive pre-tax profit of $2.47 billion last financial year.
News of the price increases is likely to add further pressure to airlines facing a public relations crisis.
Former boss Alan Joyce resigned as CEO in September following scandals, including allegations that Qantas continued to sell tickets for canceled flights.
Mr Joyce this week avoided spearheading an aerial inquiry in the House of Lords after a coalition bid to extend it failed.
The Australian Competition and Consumer Commission (ACCC) will resume oversight of domestic air passenger services to ensure Australians understand the benefits of a competitive aviation sector, the federal government recently announced.
A joint statement from Finance Minister Jim Chalmers and Transport Minister Catherine King said: “We are building a safe, sustainable and efficient aviation sector that provides Australians with high standards of service, fair prices and better consumer protection. “I hope for that,” it says.
“The competitive airline industry is putting downward pressure on prices and helping to provide more choice for Australians facing cost of living pressures.”
Qantas chairman Richard Goyder also recently announced that he will step down from his role in 2024.
Mr Goyder’s long farewell comes after the High Court upheld a Federal Court ruling that Qantas had illegally outsourced more than 1,700 jobs during the pandemic, with transport union leaders furious at Qantas. was severely criticized by.
The price increases are another headache for new CEO Vanessa Hudson after a difficult start.