Qantas hikes fuel surcharges

Qantas Airways Friday said its fuel costs would rise by A$300 million (US$311 million) in the second half of the financial year as it increased surcharges for the second time in two months. The Australian carrier, which in February announced it would slash at least 500 jobs and cut costs after an 83 per cent slump in first-half net profits, said jet fuel was its largest operational expense and market prices were high. "While fuel surcharges, price increases and hedging are being used to mitigate the impact of fuel prices, they will not fully recover the cost impact," Qantas said in a statement. To claw back some revenue, it said one-way fuel surcharges on its international flights would rise between Aus$10 and Aus$30 from April 12. This translates to Aus$350 in charges on an Australia-Asia return flight and Aus$760 on services to and from London. Domestic fares were not spared, with ticket prices going up by about five percent. The airline, which raised fuel prices in February, said underlying fuel costs were expected to rise by $300 million in the second half of the year to June 30 to Aus$2.25 billion from the previous corresponding period.