Qantas, Jetstar eliminating domestic fuel surcharges

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Australia's Qantas Airways and low-cost subsidiary Jetstar are to remove fuel surcharges from all their domestic flights.

Oneworld alliance carrier Qantas says in a statement that the fuel surcharges will be removed from its Qantas mainline and QantasLink regional domestic flights for tickets issued from 1 January. Jetstar says in a separate statement that it too will remove surcharges from domestic flights on that day.

"When we reduced surcharges last week, we said we would closely monitor the situation," says Qantas executive general manager John Borghetti.

"We are responding today, with the removal of the A$18 ($12.30) per sector fuel surcharge that applied to all Qantas domestic and QantasLink bookings."

Qantas says international surcharges will remain "based on the higher fuel costs associated with our international operations". However "they have been reduced twice since October and will remain under review".

The carrier first introduced fuel surcharges in May 2004 after fuel prices started rising. It says that although fuel costs have fallen substantially in recent months, "prices remain volatile".

Australia's Virgin Blue announced last week that it was eliminating fuel surcharges from its domestic flights.