Qantas cuts fuel surcharge on international fares

SYDNEY - Qantas Airways will cut its fuel surcharges on international fares from next week.

The cut applies to airfares originating out of Australia only.

However, chief executive Geoff Dixon said the airline would continue to monitor fuel prices before cutting the surcharges on Australian domestic fares.

The carrier said the cost of fuel remained its biggest challenge but still upgraded earnings guidance for fiscal 2007 after announcing 340 jobs would be cut.

Qantas shares jumped A21c to A$4.13.

Qantas also said it would outsource its IT applications support and maintenance to global services Satyam Computer Services and Tata Consulting Services.

Dixon said the transition to Satyam and Tata, which would take place over 15 months from November, would mean the loss of up to 340 Qantas IT positions.

"If [oil] prices continue to fall, we will extend the reductions to our domestic surcharges, which were not included in the most recent increase in August 2006, and look at further reductions to our international surcharges," he said.

Qantas introduced fuel surcharges in May 2006.

The cuts to the surcharges, which will be effective on tickets bought on or after Tuesday, range from A$5 to A$15.

The surcharge on fares to the UK and Europe will fall A$15 to A$170 while the charge for trips to the US, Canada, South America, South Africa and India will be A$133, down A$12.

Fares to Asia, the Pacific and Honolulu will attract a A$105 surcharge, down A$10, while those to New Zealand will carry a A$60 levy, down A$5.

- AAP