Australian flagship carrier, Qantas Airways
, to cope up with the existing global oil price rise recently released a hefty increase in the fuel surcharge by USD 105. The increased surcharge will be applicable each way on international routes from Australia to Europe and North America.
The increase is third move, which the airline has taken combat with the rising fuel price. Previously it increased fares and fuel surcharge on its domestic routes, withdrew few airline flights and also did management job cuts.
Alan Joyce, chief executive, Qantas, said, "The cost of jet fuel at the moment is the single biggest threat to our business since the global financial crisis. If these (fuel) prices are sustained, next year's fuel bill will be hundreds of millions of dollars more."
At present the airline is struggling with rising jet fuel prices and with its business, which has been disrupted due to the natural calamities that hit Japan, Australia and New Zealand. The airline estimated a loss of AUD 140 million in its total earning due to the recent disasters.
The airline has spent around 3.7 billion on fuel in the 2010/11 (July/ June) and plans to spend around AUD 2 billion in the second half of 2010/11.
The airline is also facing a treat of strike action by few of its workers over pay and conditions, as some extreme demands made by the unions have not been accepted.