Qantas says expect more fare increases to cover fuel costs

SINGAPORE: Qantas expects more fare increases going forward due to higher oil prices, despite the recent hikes in fares, its chief executive said on Monday.

"We have gone through now a number of fare increases and fuel surcharge increases," Alan Joyce told Reuters on the sidelines of the IATA meeting in Singapore.

He said the increases have still not recovered the additional fuel costs.

"So, still looking at more increases going forward to cover it. Hedging just gives you time."

Joyce also said 50 percent of the airlines' fuel purchases have been hedged for the next financial year that starts July 1.

"We are very heavily hedged obviously in the next quarter and then it goes down in the next quarter and then goes down again," he said.

Copyright Reuters, 2011