Qantas joins Air India and Air New Zealand in hiking fare prices due to increased jet fuel costs

Qantas is joining other international airlines in increasing airfares as the US–Israeli war in Iran drives up the cost of jet fuel.

The airline announced that international fares will go up this week after the cost of jet fuel rose by up to 150 per cent in just a fortnight.

“Qantas International is increasing fares this week in response to rising costs including the significant increases in jet fuel prices,” the airline said in a statement.

Adelaide Airport has marked the resumption of international Qantas flights after more than a decade, with the inaugural Adelaide to Auckland service departing this morning. — Qantas is joining other international airlines in increasing fares. (Nine)

“These increases will vary from route to route.”

Jetstar, the budget airline owned by Qantas, has similarly increased the cost of its airfares.

Virgin is a predominantly domestic carrier and is assessing the impacts of long-term fuel price increases.

As the price to operate rises, demand has also surged.

Qantas has recorded an increased demand for routes to Europe via Singapore for March as flights continue to operate as normal.

Services from Perth to London or Paris and services via Singapore are more than 90 per cent full, which is 15 per cent higher than normal for this time of year.

That demand is also being felt right up to June as Australians choose to keep their European travel plans and fly longer routes through the United States, Asian cities and South Africa.

Flights are still operating, but just around Iran and the Middle East. (Flightradar24)

“There have been strong bookings in recent weeks across parts of our international network for travel over the coming months,” Qantas said.

“Bookings for flights to and from Europe between April and June have also increased in recent weeks on these routes as well as the Perth-Rome seasonal service which resumes in May.

“We are exploring options to redeploy capacity into Europe on existing routes in the coming months.”

The joint US-Israeli war in Iran has all but cut off the Strait of Hormuz, a narrow passage where one-fifth of the world’s oil passes through.

It has caused a major supply chain disruption, leading to reduced supply and increased costs.

Air New Zealand and the Air India group have also been forced to increase fares to offset the rising cost of jet fuel.

One-fifth of the world’s oil passes through the Strait of Hormuz. (AP Photo/Jon Gambrell, File)

Air New Zealand has already increased fares and signalled that more price hikes and cost-saving measures will be needed as it anticipates a significant hit to its second-half earnings.

“If the conflict leads to continued elevated jet fuel costs, the airline may need to take further pricing action and adjust its network and schedule as required,” the airline said.

Air India group announced it will add a fuel surcharge of up to $US50 on all domestic and international routes and will adjust these accordingly with any changes in the war in Iran.

”Air India regrets the need to increase fuel surcharges in this manner but emphasises that it is necessitated by factors outside its control,” the airline said.

“Absent such fuel surcharges, it is likely that some flights would be unable to cover operating cost and would have to be cancelled.”

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