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Qantas announced yesterday it would remove its domestic fuel surcharges for tickets issued on or after Thursday 1 January 2009.
Executive General Manager, Mr John Borghetti, said the airline had reduced domestic and international twice in recent months.
“When we reduced surcharges last week, we said we would closely monitor the situation,” Mr Borghetti said.
“We are responding today, with the removal of the $18 per sector fuel surcharge that applied to all Qantas domestic and QantasLink bookings.”
Mr Borghetti added, “Based on the higher fuel costs associated with our international operations, international surcharges will remain. They have been reduced twice since October and will remain under
review.”
Qantas maintains that despite recent falls in the price of oil, Qantas’ fuel costs were still greater than when surcharges were first introduced in May 2004.
“Fuel remains a major cost to our business and, even with surcharges, we have absorbed significant amounts of the additional record fuel costs incurred in recent years,” Mr Borghetti said.
Despite lower price, the Qantas Group says its 2008-09 fuel bill will still be $400 million higher than last financial year.