Qantas flight prices are set to soar as the national airline passes on rising costs to its customers.
Ticket prices on domestic and international Qantas flights will jump by 3.5 per cent from October 27, piling more pressure on cash strapped Aussies.
The national airline said it has ‘no choice’ but to increase prices as it struggles to absorb the rising cost of fuel, but the move has left customers furious.
‘It just seems like they’re taking the p**s. Australians don’t like that,’ one irritated woman told 9 News.
Qantas flight prices are set to soar as the national airline passes on rising costs to its customers
Jetstar flights will also be 3 per cent more expensive from next week.
The increase could make it harder for families to get together over Christmas with the holiday season just around the corner.
In a statement, Qantas said it was no longer able to absorb the rising cost of fuel brought about by factors such as the ongoing conflict in the Middle East and a weak Australian dollar.
Late last month, the airline foreshadowed the change, noting in an ASX announcement fiel prices has ‘increased by around 30 per cent since May 2023, including a 10 per cent spike since August’.
‘If sustained, this is expected to see the Group’s 1H24 fuel bill increase by approximately $200 million to $2.8 billion after hedging,’ the statement read.
‘The Group will continue to absorb these higher costs, but will monitor fuel prices in the weeks ahead and, if current levels are sustained, will look to adjust its settings. Any changes would look to balance the recovery of higher costs with the importance of affordable travel in an environment where fares are already elevated.’
Qantas, which owns Jetstar, recorded an eye-watering record pre-tax profit of $2.47 billion in the last financial year.
News of a price hike is likely to pile more pressure on the beleaguered airline as it grapples with a public relations crisis.
Ex-boss Alan Joyce quit as CEO in September amid multiple scandals, including allegations Qantas continued to sell tickets for cancelled flights.
Joyce has avoided fronting a Senate inquiry into aviation after a Coalition bid to extend the inquiry failed this week.
SYDNEY, AUSTRALIA – NewsWire Photos – OCTOBER 14, 2022: General generic editorial stock image of Jetstar aircraft at Sydney Domestic Airport
The Australian Competition and Consumer Commission (ACCC) will resume monitoring domestic air passenger services to help ensure Australians see the benefits of a competitive airline sector, the federal government announced recently.
‘We want a safe, sustainable and efficient aviation sector that provides a high standard of service, good prices and better consumer protections for Australians,’ a joint statement from Treasurer Jim Chalmers and Transport Minister Catherine King read.
‘A competitive airline industry helps to put downward pressure on prices and deliver more choice for Australians facing cost-of-living pressures.’
Qantas chairman Richard Goyder also recently announced he would be retiring from the position in 2024.
Goyder’s long goodbye was slammed by Transport Workers Union bosses furious with Qantas after the High Court upheld a federal court ruling the airline had illegally outsourced more than 1700 jobs during the pandemic.
The latest price hike is yet another headache for new CEO Vanessa Hudson as she endures a torrid start to her role.
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