Qantas Anticipates Rising Fuel Costs and Invests in Customer Experience Amid Reputational Challenges

Qantas Airways of Australia announced on Monday that due to rising fuel prices, it anticipates its fuel bill to increase by approximately A$200 million ($128.80 million) in the first half of the 2024 fiscal year.


The airline stated that fuel prices have risen by about 30% since May 2023, including a 10% increase since August. This surge is attributed to a combination of higher oil prices, increased refiner margins, and a depreciating Australian dollar. In addition to the fuel-related costs, Qantas expects an additional impact of A$50 million due to non-fuel-related foreign exchange changes in the first half of the current fiscal year.


In response to reputational damage following a lawsuit by the country's competition regulator for selling tickets on thousands of already-canceled flights, Qantas plans to invest an additional A$80 million in fiscal 2024 to address "customer pain points". This initiative will include enhancements to call center resources, increased availability of frequent flyer seats, and a review of longstanding policies for fairness.


The airline confirmed that this customer-improvement initiative would be financed from its profit. For the fiscal year ending June 30, it reported an annual underlying profit before tax of A$2.47 billion, a significant turnaround from a loss of A$1.86 billion the previous year.

Post a Comment

Previous Post Next Post

1 / 3
2 / 3
3 / 3
EN - 728x90