economy
Qantas may hike fares and expand Jetstar add-on fees as profits dip to four-year low
Airline declines to predict impact of new carry-on luggage charge on Jetstar revenue or ticket sales, saying it is offering customers ‘choice’
TL;DR
- Qantas' pre-tax profit has fallen to a four-year low of $2.06 billion due to higher fuel costs.
- The airline plans to increase fares and introduce more add-on fees on its Jetstar brand.
- Jetstar will expand its pipeline of ancillary services beyond ticket prices, which already generate over $1 billion annually.
- Qantas will begin retiring its Airbus A380 fleet in 2028, earlier than the previously planned 2032.
- The company expects to purchase up to 20 additional new planes from 2030.
- Despite a 7% increase in overall revenue to $25.5 billion, higher fuel costs significantly impacted profitability.
- The Qantas loyalty scheme saw earnings increase by 12% to $625 million.