Qantas will increase fuel surcharges on both domestic and international flights starting mid-August.
The airline has attributed the rise in fuel cost to currency fluctuations. Fuel is usually paid by airlines in US dollars, and with the Australian dollar declining to within 0.2 per cent of its lowest levels in almost three years, the price of US-dollar-denominated products are more costly.
The airline previously charged a flat fuel fee regardless of seat class, but the new changes to its pricing structure will bring it in line with its Middle East partner, Emirates.
The new structure means that domestic base fares will rise by two to three per cent, while the base fares of international routes will rise instead of fuel surcharges.
Fuel surcharge for flights to the US will increase to A$365 (US$327) one way on economy and premium economy, whilst passengers on business class will see it rise to A$390 (US$349). Flights to UK will see surcharges jump to A$255 (US$228) for economy, A$325 (US$291) for premium economy, and A$445 (US$399) for both first and business class. The rising fare for economy flights will be felt throughout other parts of the world, with a rise of A$25 (US$22) for Middle Eastern and South American destinations, A$10 (US$9) for Asia and Honolulu, and A$25 (US$22) for South Africa.
The new changes will also affect Qantas Link, the airline's regional carrier.