Virgin Australia hikes fares and fuel surcharges

Virgin Australia hikes fares and fuel surcharges

Virgin Australia will increase airfares and fuel surcharges from 22 August 2013, following last week's similar round of increases by Qantas.

The average base airfare on domestic and regional flights within Australia plus "the majority of short-haul international routes" will go up by 3 percent, the airline says.

Long distance international fares will go up from $50 for a return flight to Europe and the Middle East if you're in economy, $70 in premium economy and $130 in business class, all through a boost in the base fare.

Business class travel to the US will also rise by $50 for a return flight in economy and $70 in premium economy via adjustments to the base fare, but $100 in business class through increases in both the basic ticket price and the fuel surcharge.

Virgin Australia says the increases are an unavoidable result of "the sustained fall in the value of the Australian Dollar and the recent increase in crude oil prices" which have seen the airline's fuel costs rise by 13 percent over the past two months.

“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 value of the Australian dollar" explains Virgin Australia Chief Commercial Officer Judith Crompton.

However, Crompton also pledges that "we will 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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David Flynn
David Flynn is the editor of Australian Business Traveller and a bit of a travel tragic with a weakness for good coffee, shopping and lychee martinis.
 

11 comments

  • AusFlyer

    AusFlyer

    5 Aug, 2013 12:51 pm

    Interestingly, the people who had a go at Qantas last week for doing this have so far been very quiet now that Virgin have also done it..... Surely they must all be just as upset with Virgin no?

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  • johnaboxall

    johnaboxall

    5 Aug, 2013 01:18 pm

    Yes, I'm upset - but at the pre-tax cost of the carbon tax which hammered the profit guidance by around $45~50 million. 

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  • PLATY

    PLATY

    5 Aug, 2013 03:59 pm

    Note reported $60 million reduction in profit attributable to restructuring costs associated with Skywest.

    Funnily enough, I didn't see fuel mentioned in the reports of reasons for losses - did I miss something?!

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  • Southland

    Southland

    5 Aug, 2013 01:56 pm

    Thats why they let QF go first. Smart i reckon. Everyone is whinged out lol

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  • undertheradar

    undertheradar
    Banned

    5 Aug, 2013 02:48 pm

    ..V  true .... V virgin   lol 

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  • PLATY

    PLATY

    5 Aug, 2013 03:42 pm

    AusFlyer, please consider:

    Even with these changes VA's fuel surcharges remain a fraction of those of QF when it comes to point redemptions

    Haven't seen VA put out two contradictory press statements within a few weeks on fuel charges like QF (a subject on which AusBT remains silent) with the later statement reportedly claiming there'd been no previous increases for years (just a couple of weeks after making them on some premium fares on some routes!)

    VA are admitting that problems with the cut over to their new booking system has hit them hard (in their "profit" (loss) announcement) rather than pretending it's all rosey

    Not saying they're much better, personally the online booking system is a big turn off, especially the lack of multi sector fares and most of the redemption opportunities (which have to be booked on the phone)...

     

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  • AusFlyer

    AusFlyer

    5 Aug, 2013 03:54 pm

    Hi Platy

    To be honest... I have neither the time nor the desire to do a like for like comparison of the different fares and point redemption costs for the two airlines. I just find it incredibly amusing that some people jump on the bandwagon and make negative comments about Qantas anytime they make an announcement like this but the same people seem to be fine with Virgin announcing the same thing. I also find it a normal part of the airline business these days that things like fuel costs will be borne by the ticket holder and I don't find it offensive and I don't blame them for doing it.

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  • PLATY

    PLATY

    5 Aug, 2013 04:06 pm

    No problem AusFlyer...can only speak for myself, but I have my REASONS for disliking aspects of the way QF conduct themselves, favouring QF on some issues, and favouring VA on others.

    One issue just happens to be the colossal fuel surcharges on redemption tickets with QF.

    In my case, it affects the way I allocate my travel business to the respective airlines and spend my points - I need to do the like for like comparison to make my choices.

    Others will differ...

    Forgive me for misinterpreting your post as an invitation for debate.

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  • undertheradar

    undertheradar
    Banned

    5 Aug, 2013 02:16 pm

    .... ive noticed VA  'saver lite' fares on SOME  routes which DO NOT INCLUDE checkin baggage /food/beverage (PAX PAY XTRA) ....are creeping up to.. (about $10 difference ) QF red-e-deals (checkin baggage / some type of food / beverage  INCLUDED) ..a few months ago the difference was about $20-30.... just an observation ....

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  • Southland

    Southland

    6 Aug, 2013 10:10 am

    In the aviation world there is a worst kept secret. Virgin will go full service so thet $10 creep up will be for a biscut or a muffin by the years end.

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  • Platypus

    Platypus

    5 Aug, 2013 10:30 pm

    Anything to do with Virgin's reported loss?  They give the impression of being a bit stretched at the moment - lounges are getting a bit scruffy with limited offerings and business class food is sometimes way below Qantas

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27 May, 2019 03:40 am

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