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
