Lower fuel costs could be Qantas' ticket to profitability

Falling fuel costs could help Qantas' struggling international business make reasonable profits, but much will depend on the behaviour of its competitors.

While Qantas’ decision to emulate Virgin Australia and cut fuel surcharges is largely (albeit not entirely) cosmetic, there was an unusual underlying tinge of optimism to the context in which Qantas presented its decision.

Once Virgin announced it would get rid of its surcharges on flights to the US, Qantas really had no option but to follow suit, even though it is a decision that will actually have more immediate impact on Qantas than its rival.

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