Qantas criticised over high fuel surcharges

Qantas is increasingly being questioned as to why its fuel surcharges are more than eight times higher than in 2004, even with the price of oil having dropped to levels seen in that year.

The Australian carrier introduced its fuel levies in May of 2004, with a $6 charge added to each sector on domestic flights and $15 per leg on international services.

What this ended up costing passengers was $15 each way on non-stop services to the US and $30 one way on two-sector flights to destinations in Europe.

Even with the reductions announced by the airline this week of as much as $30 per flight, fuel surcharges on a one-way flight to Europe will be $160, which is five times the amount of the surcharge in 2004, when the levy was introduced.

The $130 surcharge on a flight to the US is over eight times the amount it was four years ago and the $18 for each domestic sector is three times what it was in 2004.

Criticism is based on the fact that oil prices, at around US$40 per barrel now, are nearly equal to what they were in 2004. In addition, the exchange rate between the Australian and US dollars is nearly the same.

The significant discrepancies in the amount of the levies have prompted the consumer group Choice to call for Qantas to be more transparent in regard to its fuel surcharges.

www.qantas.com.au