Go-slow Qantas makes more cuts
SYDNEY – Qantas, which last week raised fares and confirmed that its aircraft are flying slower to conserve fuel, is cutting back on capacity in a further measure to trim its soaring fuel bill.
The cancellation of five per cent of Available Seat Kilometres (ASKs) are the equivalent of grounding six aircraft, said a Qantas spokeswoman.
CEO Geoff Dixon said Qantas’ fuel bill would increase by more than A$2 billion in 2008/09, representing around 35% of the company’s total expenditure.
“The fact is that fuel prices are something we have no control over, so we have to look harder at areas where we do have control,”Dixon said.
“Despite our fuel hedging strategy, fuel surcharges, two separate across-the-board fare increases and a recruitment freeze, we are not bridging the widening gap between the actual increase in the cost of fuel and the amount we offset.”
Dixon said the Qantas Group would manage the reduction in ASKs by:
– retiring one B737 aircraft;
– grounding two B767 aircraft and one Jetstar A320 aircraft;
– cancelling the delivery of one Jetstar A321 aircraft;
– accelerating the retirement of its four B747-300 aircraft.
By Ian Jarrett
Ian Jarrett
Vegas’s Billion-Dollar Secrets – What They Don’t Want Tourists to Know
Visit Florida’s New CEO Bryan Griffin Shares His Vision for State Tourism with Graham
Chicago’s Tourism Renaissance: Graham Interviews Kristin Reynolds of Choose Chicago
Graham Talks with Cassandra McCauley of MMGY NextFactor About the Latest Industry Research
Destination International’s Andreas Weissenborn: Research, Advocacy, and Destination Impact
Graham and Don Welsh Discuss the Success of Destinations International’s Annual Conference
Graham and CEO Andre Kiwitz on Ventura Travel’s UK Move and Recruitment for the Role
Brett Laiken and Graham Discuss Florida’s Tourism Momentum and Global Appeal
Graham and Elliot Ferguson on Positioning DC as a Cultural and Inclusive Global Destination
Graham Talks to Fraser Last About His England-to-Ireland Trek for Mental Health Awareness
Kathy Nelson Tells Graham About the Honour of Hosting the World Cup and Kansas City’s Future
Graham McKenzie on Sir Richie Richardson’s Dual Passion for Golf and His Homeland, Antigua
ADS PRO 
Global tourism exceeds 1.5 billion travelers announces UN-Tourism
Qatar Airways offers reduced timetable to over 60 destinations
WTTC global tourism reached record economic impact of 11 trillion in 2025
Marginal increase for New York City tourism in 2025
Hands In, UATP join forces for airline multi-card payments