From Bloomie:
Qantas Airways Ltd. (QAN), Australia’s largest carrier, will increase fuel surcharges by as much as A$75 ($68) per leg on international flights as the decline in the Australian dollar lifts the cost of jet fuel.
Domestic fares will rise by between 2 percent and 3 percent in lieu of a surcharge increase, while the surcharges on international routes will vary according to cabin class and destination, according to a statement on the Sydney-based company’s website. The charges will apply for tickets issued after Aug. 14 and are the first such increases since April 2012, it said.
Qantas pays U.S. dollars for a fuel bill that ran to A$4.33 billion during 2012, exposing it to higher costs as the Aussie’s 13 percent fall against the greenback since April raises the price of U.S.-dollar denominated products. As the U.S. economy recovers and China slows, a traditional correlation between fuel prices and the Aussie has frayed.
