Qantas has been hit with a $200 million fuel cost increase which it has been absorbing but the airline has warned if prices stay high, those costs may be passed on to customers.
In a market update, the airline said fuel prices have increased by 30 per cent since May this year, including 10 per cent in the last month alone.
“This is driven by a combination of higher oil prices, higher refiner margins and a lower Australian dollar,” Qantas said.
If this fuel pressure continues, it will cost the airline a further $200 million – bringing the bill to $2.8 billion this financial year.
But Qantas said it will monitor fuel prices over the coming months and if they stay this high, it will “look to adjust its settings”.
“Any changes would look to balance the recovery of higher costs with the importance of affordable travel in an environment where fares are already elevated,” Qantas said.
The airline also announced it will spend an extra $80 million on customer improvements on top of the existing $150 million in funding.
This will go towards improving call centre resourcing and training, increasing the number of seats redeemable via Frequent Flyer points and ”more generous recovery support when operational issues arise”.
The airline will also be reviewing longstanding policies and improving in-flight catering.
“This additional investment is aimed at addressing a number of customer ‘pain points’,” the airline said.
It comes as the new CEO Vanessa Hudson apologised to customers last week and promised to listen and fix problems plaguing the airline.
(9 NEWS)
