Virgin hikes fares as dollar falls

Virgin hikes fares as dollar falls
By admin


Virgin Australia has followed Qantas by raising fares and fuel surcharges, blaming higher fuel costs and falling Australian dollar.

The announcement came as the carrier warned that losses in the 2103 financial year could it as much as $110 million.

Economy class passengers will pay an extra $50 for a return base fare to the US, Europe and Middle East with premium economy tickets rising $70.

Business class passengers travelling to the US will pay an additional $100 through a change in fuel levies and base fare and an additional $130, through a change in the fare only, on flights to Europe and the Middle East.

Short haul international fares will rise 3% while domestic routes will also rise by an average of 3%.

The changes will apply to tickets sold from August 22.

Virgin Australia chief commercial officer Judith Crompton said the airline’s fuel cost have risen 13% over the past two months due to the fall of the dollar and rising oil prices.

“As a result of the competitive environment, Virgin Australia has been unable to recover previous increases in fuel costs and is now facing higher fuel costs primarily due to the fall in the Australian dollar,” she said.

“In making these changes we have been very conscious of balancing our commitment to providing competitive fares with the operational cost of our business.”

The carrier said it would continue to closely monitor fuel prices and "consider increases or decreases to our fuel surcharges and fares in line with changes in market conditions".

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