Just working some very rough numbers as I don't fly a 777 or have access to V's fuel hedging, but say it takes 100,000KG of fuel SYD - LAX, at 0.8 that's 125,000L. At AU$1 per litre, divided by seats (350), that comes to just under AU$360.
$1000 return fares will mean minimum $720 just for fuel costs, and that's assuming 100% load factors and not taking into account the extra fuel required for LAX - SYD. These fares would just cover fuel and taxes.
Therefore don't expect these cheap fares as the norm. They're around to gain initial market share at the worst possible time against (soon to be) 4 major carriers.
On another note, nice to see the management spending big on a launch party only a week after 400 job losses were announced......nice touch!
Last edited by pylet; 27th Feb 2009 at 06:54.