Qantas outrage as airline raises ticket prices amid cost-of-living crisis

Qantas flight prices are set to rise as the national carrier passes on rising costs to its customers.

Ticket prices on domestic and international Qantas flights will increase by 3.5 percent from October 27, increasing pressure on cash-strapped Australians.

The national carrier said it has “no choice” but to raise prices as it struggles to meet rising fuel costs, but the move has angered customers.

‘It just seems like they’re taking the p**s. Australians don’t like that,” one irritated woman told 9 News.

Jetstar flights will also become 3 percent more expensive from next week.

The increase could make it harder for families to get together over Christmas as the holidays approach.

In a statement, Qantas said it was no longer able to absorb rising fuel costs caused by factors including the ongoing conflict in the Middle East and a weak Australian dollar.

Late last month, the airline forecast the change, noting in an ASX announcement that prices have “increased by approximately 30 per cent since May 2023, including a 10 per cent spike since August”.

“If this continues, it is expected to increase the Group’s fuel bill by approximately $200 million to $2.8 billion after hedging in the first half of 2020,” the statement said.

‘The Group will continue to absorb these higher costs but will monitor fuel prices in the coming weeks and, if current levels persist, seek to adjust settings. Any change would be aimed at balancing the recovery of the higher costs with the importance of affordable travel in an environment where fares are already high.”

Qantas, owner of Jetstar, recorded an eye-watering record pre-tax profit of $2.47 billion in the past financial year.

News of a price hike is likely to increase pressure on the troubled airline as it struggles with a PR crisis.

Ex-boss Alan Joyce quit as CEO in September amid multiple scandals, including allegations that Qantas continued to sell tickets for canceled flights.

Joyce has avoided leading a Senate inquiry into aviation after a Coalition attempt to expand the probe failed this week.

SYDNEY, AUSTRALIA – NewsWire Photos – OCTOBER 14, 2022: General generic editorial image of Jetstar aircraft at Sydney Domestic Airport

The Australian Competition and Consumer Commission (ACCC) will resume oversight of domestic air passenger services to ensure Australians see the benefits of a competitive aviation sector, the Federal Government recently announced.

“We want a safe, sustainable and efficient aviation sector that delivers high levels of service, good prices and better consumer protection for Australians,” said a joint statement from Treasurer Jim Chalmers and Transport Minister Catherine King.

‘A competitive aviation sector contributes to downward pressure on prices and provides more choice for Australians facing cost-of-living pressures.’

Qantas chairman Richard Goyder also recently announced he would retire in 2024.

Goyder’s lengthy farewell was slammed by Transport Workers Union bosses who were furious with Qantas after the Supreme Court upheld a federal court ruling that the airline had illegally outsourced more than 1,700 jobs during the pandemic.

The latest price hike is yet another headache for new CEO Vanessa Hudson as she makes a torrid start to her role.