Qantas puts up fares as fuel costs rise

By Vaimoana Tapaleao

Qantas is raising its airfares because of continuing increases in the price it must pay for fuel.

From May 9, the airline's international and domestic fares will be increased by about 3 per cent and 3.5 per cent respectively.

The higher price of fuel will also affect the airline's share buyback scheme, which will now be put on hold.

Chief executive Geoff Dixon said the airline was taking immediate steps to minimise the effect of the rise in the cost of fuel.#"An increase in base fares is now necessary to partially bridge thewidening gap between the actual increase in cost of fuel and the amount we offset through surcharges or non-fuel improvements," he said.

Last night, Air New Zealand said it could follow suit as a direct result of the increased fuel price.

Spokesman Mike Tod said: "Air New Zealand is currently reviewing airfares as a result of the record fuel prices and cannot rule out further increases."

If it does increase airfares, it would be the second time this year Air New Zealand has put up its prices.

Last month, Air New Zealand's domestic, Tasman and Pacific Island fares were all increased by about 3 per cent as a result of the increase in fuel prices.

- NZ Herald

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