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Old 28th Nov 2014, 06:38
  #5263 (permalink)  
Join Date: Apr 2009
Location: London-Thailand-Australia
Age: 10
Posts: 1,057

Frequent flyers hit as airline surcharges fly high despite slump in fuel prices

Qantas charges a fuel fee of $340 for a one-way economy and premium economy ticket to the United States, and $390 for business class.
On flights to Britain and Europe, it charges $285 for economy class, $385 for premium economy and $540 for first and business class.
Was/still is, "a nice little earner" I guess a few grumpy FFers will demand some attention for this matter in the not too distant future... possibly messing up the profit figures come Feb?..

However for air travellers, including those who rely on Qantas and Virgin Australia, or for that matter own shares in them and salivate over the the thought of huge boosts to profitability, the short to medium term outlook is not quite that brilliant. Australia’s major airlines are like most carriers, holders of fuel hedging contracts that have locked them into previously ‘comfortable’ prices that are now highly uncomfortable, and it will take months, maybe running beyond the end of this financial year, for those now onerous hedges to expire.
If oil were to stay low, and lower than the adjustments to the value of the Australian dollar, the benefits to the Australian carriers will be substantial. The big losers will be the hedge issuing banks or financial institutions, a popular thought at any time.
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