Qantas hikes airfares with additional $100 fuel surcharge

Australian airline Qantas has announced a fresh round of hike in fares, involving fuel surcharge of up to $100, on frequent flyer redemption seats.

The fuel surcharges could raise air fares on Qantas by as much as $290 one way for flights to UK and Europe against the previous hike which raised fares by a $190, the airline said.

On the domestic, regional and Tasman routes, fares would go up by five per cent. The increase in fuel surcharge will be 10 for domestic flights and $20 for Tasman classic award redemption seats, Qantas said.

With oil prices continuing above the $100 a barrel mark, Qantas chief executive Alan Joyce said it would be some time before the surcharges could be cut.

"With fuel prices at record highs, even if the fuel price begins to decrease, it will be some time before we will be able to decrease the fuel surcharge,'' he said.

"The revised fuel surcharges cover less than half of the increase in fuel cost for the Qantas International business for next year," he said, adding, "Qantas would spend $2 billion on fuel in the second half, about $300 million more than the first half."

Qantas had raise fuel surcharges in February and March this year.

"Our international surcharges and domestic, regional and Tasman fares remain under review, and further increases will be considered if necessary,'' Joyce said.