Qantas Says It Isn’t Price Gouging Customers

Qantas has denied claims that it price gouged customers by hiking fares following the global pandemic as the airline is investigated.

Qantas has strongly denied allegations saying that it has been price-gouging customers following an ongoing investigation by the ACCC.

The ACCC says a price hike in the months before 2023 was unnecessary and resulted in family separation, among other hardships that weren’t required.

Additionally, such a hike is directly attributed to why the overall holiday and tourism industry saw prices rise with inflation moving to out-of-control levels.

Qantas Group, including Jetstar has always denied claims that it has sought to make its customer base suffer. Meanwhile, it has also been firmly in favour of trying to offer the best-priced fares possible.

An overall investigation into Qantas is part of a broader report that focuses on practices undertaken by several leading industries within Australia, such as supermarkets and banking.

One of ACCC’s leading focuses, however, was aviation. The report highlighted that the lack of competition has allowed Qantas to increase its flight prices dramatically. While new entrees like Boza have promised low fares, they focus on unserved and underserved markets, not routes such as Melbourne to Sydney.

Qantas also responded to the investigation by saying that the temporary spike in airfares came as the Group looked to match up with reductions in capacity and to have better operational resilience. Qantas Group has been able to significantly turn around its financial fortune in the years following the pandemic.

Under new leadership, Qantas is undergoing a substantial rebuild as it has battled with significant adverse media reports and, thus, a lack of trust from the customer base.

Following Alan Joyce’s departure, focusing on customers has become one of our biggest priorities. However, repairing the relationship won’t happen overnight.

Daniel Fowkes
13 Feb 2024
· Aircraft 

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