6 Jun 2011

Qantas warns of further airfare increases

6:11 pm on 6 June 2011

Qantas has warned airfares are likely to rise further as it and other major carriers battle soaring fuel costs and an unprecedented spate of disruptions.

Chief executive Alan Joyce says recent fare increases and fuel surcharges still have not covered additional fuel costs and the airline is considering further increases in the future to make up the shortfall, the ABC reports.

Last week Qantas offered voluntary redundancies to all 7000 of its cabin crew, saying it needs to respond to rising fuel prices and the impact of natual disasters.

The announcement came on the same day the Australian airline said its international unit carried 509,000 passengers in April 2011, up 7.4% on the same month a year earlier.