Qantas warns of more pain to come on fares

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STORY: Qantas is warning of more pain to come on air fares.

Australia’s biggest airline said Monday (September 25) that spiralling fuel costs might leave it no choice but to hike ticket prices.

It warned that its half-year fuel bill could jump by close to $130 million.

That’s if current crude prices persist.

The firm said it would do its best to absorb the higher costs, but might have to adjust fares.

Qantas is trying to steer a path between reassuring customers it’s taking complaints over service seriously…

While telling investors it has a plan to deal with surging costs.

Legal headaches are adding to its woes.

Last month Australia’s antitrust watchdog said it was suing the airline for selling tickets on flights it knew had been cancelled.

Qantas also lost a union lawsuit over the sacking of thousands of staff during the global health crisis.

The airline says it will now spend an extra $52 million on customer service improvements.

That’s on top of existing investment plans.

It says the money is aimed at tackling customer “pain points”, such as service by call centres.

Qantas shares sank close to 2% after Monday’s update.