Qantas reduces Frequent Flyer charges

first_imgThe Qantas Group has announced it will reduce charges for Frequent Flyer redemption bookings by up to AUD $130 and at the same time will gradually restructure its international tariffs so that fuel surcharges are absorbed into base fares.While global fuel prices have fallen in recent months, international air fares are extremely competitive and are significantly lower than when surcharges were first introduced 10 years ago.Qantas have made clear that due to the size of the airline’s international network the process to absorb fuel surcharges into international base fares for up to 200 destinations will take time.This change to Qantas’ international fare structure is in addition to its regular sales activity, as last week the airline lowered economy fares to Asia, the US and Europe by more than $300 as part of a sale.From tomorrow, fuel-related charges that currently apply to Frequent Flyer on Qantas and Jetstar Classic Award redemption bookings will fall by up to $110 in Economy and up to $130 in Premium Economy on some routes for a return flight.Qantas Group chief executive officer Alan Joyce, said that the trends in global aviation over the past decade shows that costs and competition have been increasing while fares and airline margins have been falling.“The dynamics of this market have seen Qantas International post significant losses in the past two years, factoring in lower fuel prices, IATA estimates that the net profit airlines make per passenger this year will rise by just $1 compared with last year, from $6 to $7,” Mr Joyce said.“In a highly competitive environment where customers are already paying less than they were several years ago, lower oil prices can help put the industry on a more sustainable footing, it means airlines are in a better position to invest.”In other Qantas news, the airline and the Australian Government today announced a collaboration to support ANZAC Centenary activities marking the 100th anniversary of the Gallipoli landings.Qantas has added a special flight for Australians travelling to Turkey for Anzac Day – the Boeing 747 seats 364 people and will depart Sydney for Istanbul on 21 April, via Perth. Source = ETB Travel News: Lewis Wisemanlast_img

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