SYDNEY—Qantas Airways QAN,
said fuel bills for the first half of the 2024 budget could rise by 200 million Australian dollars ($128.82 million) due to higher oil prices and a lower Australian dollar.
Australia’s flag carrier said on Monday it expects its first-half fuel bill to rise 7.7% to A$2.8 billion after hedging if energy price growth continues. Fuel prices have risen about 30% since May, including a 10% spike since August, Qantas said.
“The group will continue to absorb these higher costs but will monitor fuel prices over the coming weeks and, if current levels persist, seek to adjust settings,” Qantas said. “Any change would be aimed at balancing the recovery of the higher costs with the importance of affordable travel in an environment where fares are already high.”
At the same time, Qantas said it expects a further impact of A$50 million from non-fuel related exchange rate changes.
Also on Monday, Qantas said it plans to invest another A$80 million in improving customer service after a series of missteps, including accusations from an Australian regulator that it had been unfair to customers by advertising tickets for more than 8,000 flights it had already canceled. .
Qantas said the planned investment is in addition to the A$150 million it had previously budgeted and would be funded from profits.