Qantas increases fuel surcharge

1.00pm

Qantas Airways today announced it would increase its fuel surcharge by A$2 ($2.16) for domestic travellers and A$7 for international travel because of the rising price of oil.

Chief financial officer Peter Gregg said the airline had made the decision reluctantly.

"However, with jet fuel now at more than US$60 ($88.87) a barrel and showing no sign of falling, an increase in the airlines fuel surcharge was unavoidable," he said.

"The hedging we have in place and the higher fuel surcharge will not cover all of the increased cost of jet fuel."

The surcharge will increase by A$2, from A$10 to A$12 per sector for domestic travel and by A$7, from A$22 to A$29 per sector for international travel, effective from October 20.

"Qantas will continue to absorb much of this increased cost and seek greater efficiencies across the business," Mr Gregg said.

Qantas first announced a fuel surcharge in May and increased it in August.

- AAP