Low cost carrier Jetstar said yesterday it will be considering price hikes in 2006 to offset rises in fuel prices when its hedging arrangements with Qantas end.
“We’ve got a fuel surcharge of $19 on our fares and we are part of the Qantas hedging policy which has us hedged at the same as Qantas, (and our) fuel price hedging runs out into next year,” Jetstar chief executive Alan Joyce told AAP.
However Mr Joyce said lifting prices would only happen if the airline thought it could sustain passenger levels.
“We’ve been very much conscious – and we still continue to be – of the impact prices has on demand,” he said.
“We know that certainly at the price-end of the market that we are at, that you have to be very careful because if they go up too much demand will be impacted.
“We, like Virgin Blue, have an approach that when there is the ability to increase fares and not have a detrimental impact on demand we will take those opportunities.”
