Loading ...Qantas announced that they will increase their air fares to compensate for increasing fuel prices and to safeguard their profitability. Qantas have quoted a 3% increase on their international fares and a 3.5% increase on their domestic fares. This change to air fares will be effective from May the 9th, 2008. For more information about Qantas and check out their domestic and international fares see their website on http://www.qantas.com.au
Geoff Dixon, chief executive of Qantas stated “We remain confident of meeting our guidance for a 2007/08 result of a least 40 percent higher than the 2006/07 reported profit before tax.”
In 2007 Qantas made of pre-tax profit of $1.03 billion which is 963 million US dollars. In 2006 the company made 671.2 million, so they have witnessed a huge increase in profit and aim to continue their success in 2008.
Qantas’ has tried to prevent rising air fares by cutting back on expenditure and hiring. The airline has also postponed their share buyback plan; since September 2007 Qantas has bought back $500 million worth of shares. They have now suspended this expenditure in an attempt to diminish the impact of rising fuel prices. Qantas is not the only airline to increase their fare charges, Thai airways and Air New Zealand have also to increase their surcharges as a result of increasingly expensive fuel.