Qantas Eyes Fare Hikes and Jetstar Fee Expansion Amid Profit Slump

Qantas is considering increasing ticket prices and expanding ancillary fees on its budget airline, Jetstar, as the company reports its lowest pre-tax profits in four years. The airline attributes the decline to rising fuel costs, but its chief executive, Vanessa Hudson, indicated that strong passenger demand could support additional revenue generation.

These potential changes come as Qantas seeks to bolster its financial performance. The company has also introduced new carry-on luggage charges on Jetstar, with management declining to predict the exact impact on revenue or ticket sales, emphasizing that the move offers customers greater 'choice'. The airline's strategy reflects a broader trend in the industry where carriers are increasingly relying on add-on services to supplement core ticket revenue.