Tag: Fuel PricesView All Tags
Flights over the Pacific will be tapping your pockets just a bit more. In response to a carbon tax in Australia and carbon trading schemes in Europe, Qantas has announced their fares will creap up in the near future. Do not fret, as there is still time to enjoy some world-class beaches and pet a koala or kangaroo before the change.
The red roo has announced an increase of no more than 24% in fuel surcharges for international and domestic flights. International itineraries increase by flat rate, while the domestic charge depends on the length of the flight. Unfortunately, with the high cost of jet fuel and taxes, Qantas is not alone in airfare hikes.
The biggest news surrounding Virgin America this weekend was the roll out of in-flight WiFi with a special beta flight on Saturday. (Why yes, we were in attendance.) But more news happened to shake out Saturday that sheds light on the still-young carrier's future.
CEO David Cush told Reuters that with prices at roughly a third of the highs hit this summer, now might be the time to secure some good deals on fuel:
We see a pretty unique opportunity with what's going on in the fuel markets right now to go in and lock in some long positions. I would imagine over the course of the next several weeks that we will be going out two and three, and perhaps even four, years into the fuel market and locking in some of the prices that are there today.
Cush also revealed that Virgin America probably won't turn a profit until 2011; previously VA was aiming to make money by 2010. There might not be a chance to revise that date again: After asking investors for another infusion of capital in October, there's currently enough cash in the bank to last another three years.
[Photo: Virgin America]