Qantas to hike fares as oil price soars
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The news: Qantas will hike its airfares in response to rising fuel costs, which have jumped after conflict in the Middle East put upward pressure on oil prices.
The numbers: Qantas will lift its fares by an average of 3% and on Jetstar flights fares by an average of 3.5% on bookings made from October 27, The Australian reports. A Qantas spokesman said the airline had recently absorbed recent fuel spikes but a weaker Australian dollar and tensions in the Middle East underscored expectations of higher fuel prices for longer.
The context Oil prices are roughly where they were at the beginning of October, and roughly 5% lower than the 11-month highs reached in late September. Brent Crude futures are trading at USD93.3 per barrel while West Texas is trading at around USD90.7 a barrel.
The sources: The Australian, Reuters
