Qantas CEO Alan Joyce this week has said Australian’s can expect to see higher higher fares as global oil prices begin to rise.
Joyce was speaking at the IATA’s world transport summit in Sydney. “Everybody has to digest fuel costs and there’s different ways of doing that,” Mr Joyce said.
The expected rise in airfares isn’t just Qantas, it’s globally. The International Air Travel Associated (IATA) said it expected global airfares to rise by 3.2 per cent this year. This will be the first annual increase since 2011.
The global airline industry is set for a challenging season ahead to maintain profits as Crude oil rises. Bent Crude is set to be $US70 a barrel which is 27 per cent higher than in 2017 ($US55/barrel).
According to government data, domestic airfares have also risen 20% this year. Joyce says the airline will counter the fuel increase by focusing on route efficiency and weight of equipment onboard.
In other Qantas news, the airline has placed an order for six more Boeing 787 Dreamliners to replace ageing Boeing 747’s.
Qantas has also given into pressure from the Chinese government and relabed Taiwan as a ‘territory’ instead of a country. [Read more ABC]
More to come…