From NEWS.COM.AU:
QANTAS stands accused of price-gouging on its fuel surcharges for lucrative routes to the UK and Europe after it refused to pass on the full reduction from the falling cost of jet fuel.
Research by CommSec shows that passengers on long-haul flights are being overcharged on the fuel duty by about $80.
"While jet fuel prices have more than halved over the past five months, ticket prices to Europe, the US and Asia are only down by 20-25 per cent," Craig James, of CommSec, said.
The international surcharge still stood at $160 compared to a "fair" level of about $80, he said.
"The fuel surcharges on domestic and short-haul flights are now back to the levels prevailing in mid-2005," James said.
"But surcharges on long-haul flights to Europe and the US are up to $100 higher than they were in April 2005 - even though fuel prices are at similar levels."
The findings highlight intense competition on domestic routes, where keen-eyed travellers are more sensitive to price hikes.
"If you're paying $200 a ticket and there's a fuel charge of $40, it seems a substantial amount and you notice it," Savanth Sebastian, another CommSec economist, explained. "But if there's an extra $80 on a flight costing $2500 are you really going to notice?"
It is not the first time Qantas has charged international travellers more on the fuel surcharge.
In 2006, the surcharge jumped from $98 to $185 on various international routes but the domestic surcharge remained unchanged.
"The fuel price didn't change in that period so it's very strange the fuel surcharge jumped so high for no apparent reason," Sebastian said.
"The surcharge peaked at $210 in January this year so Qantas has made some cuts - it's just that they haven't been as substantial as they probably should have been."
Qantas did not comment on the figures yesterday.
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