Qantas seeks fuel surcharge hike

MANILA, Philippines - Australian carrier Qantas Airways Ltd. is seeking the approval of the Civil Aeronautics Board (CAB) for a proposed imposition of fuel surcharge on its international flight tickets.

“Notice is hereby given that Qantas Airways Ltd. has filed with CAB a petition for authority to impose fuel surcharge on international passenger tickets,” the CAB said in a notice posted on its website.

Qantas Airways, the CAB said, intends to apply fuel surcharge of $165 per sector on tickets of its international flights.

Qantas Airways has flights from Australia to Manila.

Fuel surcharges form part of the airline ticket prices to allow the carrier to recover the cost of fuel.

Fuel is said to account for the bulk of an airline’s operating costs.

The International Air Transportation Association’s (IATA) price monitor showed that the jet fuel price has reached $112.2 per barrel as of June 22, down nine percent from last year.

Compared to a month ago, IATA’s price monitor showed that jet fuel price as of June 22 was lower by 8.3 percent.

Based on IATA’s estimate, the new fuel price average for the year stands at $130 per barrel.

The new fuel price average for the year means an additional $33 billion for the global airline industry’s fuel bill for the year.

Earlier this year, several airlines raised the fuel surcharges of both domestic and international flights amid higher oil prices.

Prices of petroleum products however, have been declining recently amid an easing of world supply and demand for oil partly due to slowing global economic growth.