Skip to main content

Jet fuel prices will top the list of challenges facing Qantas and Virgin Australia this year as their single biggest expense hovers well above $US120 a barrel, according to the Sydney Morning Herald.

Fears of higher fuel costs rose this week after the International Monetary Fund warned that crude prices could surge 20-30 per cent if Iran halts oil supplies due to trade sanctions by the European Union and the US.

The cost of jet fuel has rarely fallen below $US120 a barrel in trading in Singapore over the past year.

But the strength of the Australian dollar against the greenback has provided a small buffer for Australian airlines.

Airlines have also used fuel surcharges as a way of combating the higher costs.

Jet fuel prices have more than tripled from an average of $US37 a barrel in 2004 to $US125 this year.

Qantas and Virgin also face increased costs from the federal government’s tax on carbon from July 1.

More at Sydney Morning Herald

Dishing

Dishing up export possibilities

Exporter Today Editorial TeamExporter Today Editorial TeamApril 16, 2012
minefield

What’s mine is not yours

Exporter Today Editorial TeamExporter Today Editorial TeamApril 16, 2012
25-countries

25 countries… and counting

Exporter Today Editorial TeamExporter Today Editorial TeamApril 16, 2012