Qantas price hike! Oil Price going down?

 Leading Oz carrier Qantas Airways has indicated that it is likely to increase airfares in a bid to cover growing fuel costs.

Lately, the higher jet fuel prices have badly hit global airlines.

The rise in fuel prices has also led the International Air Transport Association (IATA) to scale down its 2011 profit forecast by more than half due to the current turmoil in Japan, North Africa and Middle East.

Alan Joyce, Chief Executive of Qantas, said, “We have gone through now a number of fare increases and fuel surcharge increases. The increases have still not recovered the additional fuel costs and the airline was looking at more increases going forward to cover it. Hedging, just gives you time.”

The 50 percent of the fuel purchases for Qantas have been hedged for the next financial year starting July 1.

The IATA had earlier forecast a profit of US$8.6 billion. However, after scaling down the previous forecast the IATA now expects an overall industry profit of US$4 billion in 2011.