Australian flag carrier Qantas Airways yesterday hit back at claims it was fleecing customers by imposing a surcharge on ticket prices to offset rising fuel costs.
The airline lifted its fuel surcharge for the second time on Friday, saying record crude oil prices meant the move was unavoidable.
But AMN Amro analyst Anthony Srom said the move was "money for jam" and largely unnecessary because Qantas was fully hedged for increases in its fuel bill.
Srom estimated in the Sydney Morning Herald newspaper that Qantas would make up to A$240 million (US$175.2 million) in annual revenue from its A$12 surcharge on domestic tickets and A$290 million from its A$29 international surcharge.
Qantas chief financial officer Peter Gregg denied the airline was ripping off customers, releasing a statement that labelled Srom's comments "malicious and stupid."
Gregg said it was true that Qantas was heavily hedged against rising oil prices but it was still exposed to changes in the cost of jet fuel.
"Fuel represents around 20 percent of our operating expenditure. No amount of fuel hedging could cover the recent price increases," he said
Gregg said that Qantas's fuel bill for the 2004-to-2005 fiscal year was A$560 million more than the previous year and only about A$360 million of that would be recovered through hedging and ticket surcharges.
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