The Qantas Group has announced this morning that it will be moving to reduce charges for Frequent Flyer redemption bookings by up to $130. It will also begin to restructure its international tariffs so that fuel surcharges are absorbed into base fares.
From tomorrow, fuel-related charges that currently apply to Frequent Flyers making Qantas and Jetstar Classic Award redemption bookings will fall by up to $110 in Economy and up to $130 in Premium Economy for a return flight. Reductions will vary across the network, however Qantas state that the reduction will average around 14 per cent.
While the Qantas press release made no reference to the application of the changes in the business or first class cabins, there is a smaller reduction of fuel surcharges applicable to the business class cabin. First appears to have missed out on a reduction in this round.
With regard to the International Fuel Surcharges, these will gradually be absorbed into the base fare. Overall, there will be no change in the total fare, as prices now are fully inclusive of all fees and charges.
The result of this is that travellers redeeming their points will need to use less of their own cash to reach their destination. On the other hand, folk paying for standard revenue tickets (at least for economy or premium economy), will see no overall price difference.
The changes to the fuel surcharges on redemption tickets do not apply to the joint Emirates-Qantas network, as these are negotiated between the two airlines.
Qantas Group CEO Alan Joyce said that â€œin a highly competitive environment where customers are already paying less than they were several years ago, lower oil prices can help put the industry on a more sustainable footing.
â€œIt means airlines are in a better position to invest in the new aircraft, new lounges and new routes that ultimately benefit customers.â€
The changes come after Virgin Australia announced, last week, that it was updating it fares to the United States, to absorb the fuel surcharge into the base fare.