The Qantas Group has reduced charges for Frequent Flyer redemption bookings by up to AU$130 (US$101) and will move to gradually restructure its international tariffs so that fuel surcharges are absorbed into base fares.

Overall fares will not change as a consequence of the surcharge gradually being absorbed into base fares, as prices advertised to customers already include taxes and charges. Qantas will continue to price competitively, with fares moving in line with the broader market.

While global fuel prices have fallen in recent months, the airline believes international air fares are extremely competitive and are significantly lower than when surcharges were first introduced 10 years ago.

The airline is also quick to point out that given the size of the Qantas International network, the process to absorb fuel surcharges into international base fares for up to 200 destinations will take time, but as overall fares are not changing, customers will not be disadvantaged. Recently, the airline lowered economy fares to Asia, the US and Europe by more than AU$300 (US$233) as part of a sale.

Under the changes, fuel-related charges that currently apply to Frequent Flyer on Qantas and Jetstar Classic Award redemption bookings have fallen by up to AU$110 (US$86) in Economy and up to AU$130 (US$101) in Premium Economy on some routes for a return flight. Reductions will vary across the network but average around 14 per cent.

Business travellers will be glad to know that there is no change to redemption or earn rates, with the cut delivering a tangible benefit to Frequent Flyers.

“If you look at the trends in global aviation over the past decade, costs and competition have been increasing while fares and airline margins have been falling,” says Qantas Group CEO Alan Joyce. “In a highly competitive environment where customers are already paying less than they were several years ago, lower oil prices can help put the industry on a more sustainable footing. It means airlines are in a better position to invest in the new aircraft, new lounges and new routes that ultimately benefit customers.” www.qantas.com.au