This has just been relased to the Market.
SYDNEY, 11 May 01: Qantas said today that it would introduce a fuel surcharge on passenger tickets sold after midnight on 17 May due to a substantial rise in jet fuel prices.
The CEO of Qantas Airways, Geoff Dixon, said fuel prices were currently about US$44 a barrel, the highest level for 14 years.
“Fuel represents about 15% OF Qantas’ costs last year, the second largest cost to the group after salaries and wages,” Mr Dixon Said.
“The US dollar price of jet fuel is almost 60% higher than it was 12 months ago – US$44 a barrel compared with US$28 a barrel – and this has significantly increased the cost to our business”
Mr Dixon said the main reason for the jump in fuel price was continuing tensions in the Middle East and strong global demand, particularly from the United States of America and China.
He said the last time Qantas introduced a passenger fuel surcharge was in late 2000 after jet fuel prices spiked to more than US$43 a barrel in October 2000 due to surging global demand.
The fuel surcharge will be $6 per sector for Qantas domestic, QantasLink, Jetstar and domestic NZ services and $15 per sector for Qantas International services and Australian Airlines
What I find interesting is that I was under the belief that Qantas had there fuel prices hedged at US$28 until the start of 2005.
If Qantas are hurting then
VB must be feeling the squeeze as there fuel is unhedged.