Qantas Grounds Least Popular Routes Amid Rocketing Fuel Price Fears

Posted on May 28, 2008 by Fiona Hilliard

If you’re travelling to Australia over the next few months, you might want to check your flight tickets, as the rising price of fuel has forced Australian airline Qantas to ground a number of its domestic flights from July and rethink its international schedule.

Qantas chief executive Geoff Dixon said the airline plans to cut some of its lowest performing routes including the Sydney Gold Coast route.  Up to six jets are due to be grounded. 

Commenting on the protective measures, Dixon said:  “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.  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.”

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