The world's leading long distance airline and one of the strongest brands in Australia, Qantas Airways Ltd, announced Monday it would raise domestic and international fares by 3.5 percent and 3 percent respectively to help combat rising fuel prices
The world’s leading long distance airline and one of the strongest brands in Australia, Qantas Airways Ltd, announced Monday it would raise domestic and international fares by 3.5 percent and 3 percent respectively to help combat rising fuel prices.
It also said it would suspend a share buyback, cut non-essential spending and impose a hiring freeze.
The airline remained confident it would meet its 2007/08 target of at least 40 percent profit growth despite jet fuel prices that have soared 73 percent over the past year to a record $144.49 a barrel this month.
Two weeks ago Qantas's main domestic rival, Virgin Blue Holdings Ltd, more than halved its profit outlook for this year on high fuel costs and increased competition.
Qantas said its fare increases would take effect from May 9.
For next year, Qantas said it had hedged 34 percent of its fuel needs at $90 a barrel for benchmark crude oil WTI, mostly for the first half of the 2008/09 fiscal year.
