Qantas ticket price hike sparks outrage amid living cost crisis: 'We have no choice'
Australian families are feeling the pinch right now with the soaring cost of living, and Qantas has just added further salt to the wound.
The national airline has announced price increases of 3.5 per cent on domestic and international flights from October 27, inciting outrage from cash-strapped travellers.
'It just seems like they're taking the p**s. Australians don't like that,' fumed one frustrated woman.
Qantas claimed they have ‘no choice’ but to increase the fare, citing factors like the ongoing conflict in the Middle East, and a weak Aussie dollar.
Jet fuel prices have also contributed to the change, as they have ‘increased by around 30 per cent since May 2023, including a 10 per cent spike since August’.
The company’s statement read: ‘If sustained, this is expected to see the Group's 1H24 fuel bill increase by approximately $200 million to $2.8 billion after hedging.’
‘The Group will continue to absorb these higher costs but will monitor fuel prices in the weeks ahead and, if current levels are sustained, will look to adjust its settings. Any changes would look to balance the recovery of higher costs with the importance of affordable travel in an environment where fares are already elevated,’ they added.
Jetstar, another airline owned by Qantas, will also see a 3 per cent price hike this week.
This increase comes right before the Christmas season when air travel demand typically surges. This would be an added financial burden for families who plan on reuniting over the holidays.
This comes after Qantas posted a record pre-tax profit of $2.47 billion last financial year.
A social media user expressed annoyance, commenting: ‘Otherwise, they might not make billions of dollars, and that would just be unfair and unacceptable to the billionaire and millionaire major shareholders and board members.’
‘Cost of fuel rise = record profits. Got it,’ another wrote.
Meanwhile, another social media user commented on the airlines’ ability to provide services, stating that they ‘need to improve’ them.
Recently, a traveller shared their shock about the exorbitant prices of Qantas domestic airfares. The traveller tried to book a flight from Sydney to Hervey Bay in Queensland from December 27 to January 8, but the $1,700 quote made her ‘beyond angry’. You can read more about that story here.
Qantas is also still recovering from a string of recent scandals, including allegations they continued selling tickets for flights they had already cancelled.
The airline has avoided an official grilling over these issues, with ex-CEO Alan Joyce dodging a Senate inquiry into aviation affairs.
The Australian Competition and Consumer Commission (ACCC) will continue monitoring domestic airline services for Aussie travellers to ensure the benefits of a competitive airline sector.
According to a joint statement from Treasurer Jim Chalmers and Transport Minister Catherine King: ‘We want a safe, sustainable and efficient aviation sector that provides a high standard of service, good prices and better consumer protections for Australians.’
‘A competitive airline industry helps to put downward pressure on prices and deliver more choice for Australians facing cost-of-living pressures,’ they added.
This news comes after Qantas Chairman Richard Goyder announced his early retirement in 2024. He was criticised for accepting a salary increase during a challenging period for the airline. You can read more about that story here.
How has the rising cost of air travel impacted your holiday plans? Do you have any other budget travel tips to share with fellow members? Let us know in the comments below!
The national airline has announced price increases of 3.5 per cent on domestic and international flights from October 27, inciting outrage from cash-strapped travellers.
'It just seems like they're taking the p**s. Australians don't like that,' fumed one frustrated woman.
Qantas claimed they have ‘no choice’ but to increase the fare, citing factors like the ongoing conflict in the Middle East, and a weak Aussie dollar.
Jet fuel prices have also contributed to the change, as they have ‘increased by around 30 per cent since May 2023, including a 10 per cent spike since August’.
The company’s statement read: ‘If sustained, this is expected to see the Group's 1H24 fuel bill increase by approximately $200 million to $2.8 billion after hedging.’
‘The Group will continue to absorb these higher costs but will monitor fuel prices in the weeks ahead and, if current levels are sustained, will look to adjust its settings. Any changes would look to balance the recovery of higher costs with the importance of affordable travel in an environment where fares are already elevated,’ they added.
Jetstar, another airline owned by Qantas, will also see a 3 per cent price hike this week.
This increase comes right before the Christmas season when air travel demand typically surges. This would be an added financial burden for families who plan on reuniting over the holidays.
This comes after Qantas posted a record pre-tax profit of $2.47 billion last financial year.
A social media user expressed annoyance, commenting: ‘Otherwise, they might not make billions of dollars, and that would just be unfair and unacceptable to the billionaire and millionaire major shareholders and board members.’
‘Cost of fuel rise = record profits. Got it,’ another wrote.
Meanwhile, another social media user commented on the airlines’ ability to provide services, stating that they ‘need to improve’ them.
Recently, a traveller shared their shock about the exorbitant prices of Qantas domestic airfares. The traveller tried to book a flight from Sydney to Hervey Bay in Queensland from December 27 to January 8, but the $1,700 quote made her ‘beyond angry’. You can read more about that story here.
Qantas is also still recovering from a string of recent scandals, including allegations they continued selling tickets for flights they had already cancelled.
The airline has avoided an official grilling over these issues, with ex-CEO Alan Joyce dodging a Senate inquiry into aviation affairs.
The Australian Competition and Consumer Commission (ACCC) will continue monitoring domestic airline services for Aussie travellers to ensure the benefits of a competitive airline sector.
According to a joint statement from Treasurer Jim Chalmers and Transport Minister Catherine King: ‘We want a safe, sustainable and efficient aviation sector that provides a high standard of service, good prices and better consumer protections for Australians.’
‘A competitive airline industry helps to put downward pressure on prices and deliver more choice for Australians facing cost-of-living pressures,’ they added.
This news comes after Qantas Chairman Richard Goyder announced his early retirement in 2024. He was criticised for accepting a salary increase during a challenging period for the airline. You can read more about that story here.
Key Takeaways
- Qantas flight ticket prices are set to increase by 3.5 per cent from October 27 due to rising costs, causing outrage among customers.
- The airline claimed it had 'no choice' but to raise prices in response to increasing fuel costs driven by factors such as the Middle East conflict and a weak Australian dollar.
- The Australian Competition and Consumer Commission (ACCC) will resume monitoring domestic air passenger services to ensure the benefits of a competitive airline sector.
- Aussies are outraged, especially after the company reported $2.47 billion last financial year.
- The latest price hike comes after Qantas Chairman Richard Goyder announced his early retirement in 2024.
How has the rising cost of air travel impacted your holiday plans? Do you have any other budget travel tips to share with fellow members? Let us know in the comments below!