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Virgin Blue Advises of Changes to Fuel Surcharges and Fares

14/03/2011

Virgin Blue Group of Airlines today announced it would increase fares and international fuel surcharges in response to further rises in global fuel prices. 

Virgin Blue announced international fuel surcharges and increases to baggage charges on 17 February, since then, jet fuel prices have risen by a further 10% to more than US$130 per barrel. 

Virgin Blue Group of Airlines CEO and Managing Director John Borghetti said that high fuel prices would have a significant impact on the operating costs of airlines worldwide.
 

“Oil prices are reaching increasingly high levels, with the average price of Singapore Jet Fuel rising by around 50% since September 2010, from US$88 a barrel to US$131”. Mr Borghetti said.
The following changes will apply to tickets sold from 21 March 2011:

  • International long haul fuel surcharges on V Australia flights will increase as follows:
  • Los Angeles and other USA destinations will change from AUD$115 each way to AUD$165 each way.
  • Abu Dhabi/Europe/UK will change from AUD$220 each way to AUD$240 each way.
  • International short haul fares on Pacific Blue and Polynesian Blue flights will increase by up to AUD$20 per sector. Exact increases will vary according to sector.
  • Domestic fares will increase by between AUD$6 and $10 per sector. Exact increases will vary according to sector.

“The increases announced today go some way to addressing the latest rises in global fuel prices; however they will not recover the full cost. In making these changes, we have been very conscious of balancing our commitment to providing competitive fares with the operational costs of our business”. Mr Borghetti said.

“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”.