Yahoo Finance Virgin Australia carrier charges soar 286 per cent after huge write-down
Virgin Airlines’ frequent flyer members have been alerted to a 286 per cent increase in their carrier charges.
Customers now booking Trans-Tasman economy flights using their frequent flyer points will have to pay a $10 fee, up from $3.50 – which is a 286 per cent increase.
Those booking business class will also be charged $10 – an increase from $5.50.
Also read: ‘Headwinds we can’t control’: Virgin Australia CEO defends 750 job cuts
Also read: Virgin Australia to slash 750 jobs
Passengers booking international short-haul economy flights will pay a $35 fee, up from $25, and a $70 fee for business class, up from $50.
Those flying to Hong Kong economy class will be charged a $45 fee, up from $34 – and a $98 fee if flying business class, up from $50.
Virgin Velocity Frequent Flyer chief Karl Schuster cited “increased airline operating costs” for the rise in fees.
“The new carrier charges will be effective for bookings made on or after 8 January 2020, on all Virgin Australia operated flights,” Schuster said.
“There will be no changes to flight fees to and from Los Angeles.”
Virgin Australia’s tough year
In August this year, Virgin Australia Holdings announced it would axe 750 jobs by July 2020 after suffering a $349.1 million loss in the financial year to June 30.
Virgin Australia chief Paul Scurrah told Yahoo Finance’s All Markets Summit there were “headwinds that we [Virgin] just can’t control”.
Scurrah cited rising fuel prices and a weak Australia dollar as two reasons behind the job cuts.
“Currency going down is actually really bad for us because most of the bills we pay are in US dollars,” he said.
“Fuel is a big issue for us… Things like what happened with Saudi Arabia the other day puts a fair bit of pressure on us.”
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