Qantas hikes fares on international routes as fuel costs surge on Mideast conflict

Qantas Raises International Fares As Fuel Costs Surge Over Middle East Conflict

Qantas Responds to Rising Fuel Costs and Market Disruptions

International Fare Hikes Announced

March 10 (Reuters) - Qantas Airways said on Tuesday it would hike fares on its international routes this week in response to the surge in jet fuel costs due to the conflict in the Middle East.

Capacity Adjustments and Route Planning

Potential Expansion on Europe Routes

The Australian flag carrier also said in a statement that it was considering adding capacity on its existing Europe routes in the coming months.

Impact of Middle East Conflict on Oil Prices

The U.S.-Israeli war on Iran has sent oil prices surging, upending global travel and sparking fears of a deep travel slump and the potential for the widespread grounding of planes.

Wider Industry Effects

Airfare Increases and Capacity Constraints

Airfares on Asia-Europe routes have already spiked due to airspace closures and capacity constraints.

Competitor Responses

Air New Zealand's Ticket Price Increases

Air New Zealand, Qantas's rival, also announced earlier in the day broad increases to ticket prices, one of the first airlines to do so since the start of the war.

Current Operations and Customer Trends

High Load Factors on European Routes

Qantas said in an emailed statement to Reuters that flights on its European routes were operating as scheduled and were more than 90% full in March, about 15 percentage points above typical levels for this time of year.

Alternative Travel Routes and Partnerships

"More customers have also been choosing to travel to Europe via the United States, other Asian cities, and Johannesburg, connecting through Qantas' partner airline network," Qantas said.

"We are exploring options to redeploy capacity into Europe on existing routes in the coming months."

(Reporting by Sameer Manekar in Bengaluru; Editing by Rashmi Aich)