Qantas is considering raising ticket prices and expanding add-on fees at its budget carrier Jetstar, because nothing says 'customer appreciation' like charging more during a cost-of-living crisis. The airline reported its lowest pre-tax profits in four years, and CEO Vanessa Hudson hinted that more revenue extraction is on the horizon.

"We are not saying that everything that can be done has been done, because we’re going to continue to drive where we see demand," Hudson told analysts, who apparently needed a translation for 'we will squeeze you until the pips squeak.'

The company's pre-tax underlying profit fell to $2.06bn for the year to 30 June, with fuel costs - inflamed by the Iran conflict - taking a big bite. Older A380s, which are apparently thirstier than a camel on a hot day, will now be retired by 2028 instead of 2032, because why wait to say goodbye to maintenance headaches?

Qantas plans to buy up to 20 new planes from 2030, eyeing Airbus A350-1000s and Boeing 787 Dreamliners, but no more ultra-long-haul A350s for Project Sunrise. Maybe they've realized that flying non-stop for 20 hours is a special kind of torture.

While airlines hedge fuel costs, it's only partial protection, so they typically raise fares and cut capacity on unpopular routes. Jetstar, the golden goose, is leading the charge with new fees - like the recently announced carry-on luggage fee that consumer advocates loved so much. Jetstar CEO Stephanie Tully promised "many more" ancillary initiatives, because who doesn't want to pay extra for the privilege of bringing a bag?

Non-seat fees already rake in over $1bn of Jetstar's $6bn annual revenue, and that figure is set to rise. The median Jetstar fare is now close to $150, up from nearly $100 in 2022 - a tidy inflation.

Meanwhile, Qantas overall revenue grew 7% to $25.5bn, but fuel costs added $610m, eating into profits. Before the US and Israel struck Iran in late February, Qantas had a record $1.46bn pre-tax profit for the half-year, as travelers ignored cost-of-living pressures. Rising fuel costs were partly offset by new customers fleeing airlines with Middle East stopovers.

The loyalty scheme saw underlying earnings up 12% to $625m, with Uber as the fastest-growing points source. Banks have reformed credit card rewards ahead of the surcharge ban, but Qantas expects points earnings to grow at least 5% and hit $800m by 2030. Shares rose over 4% on the news, because investors love a good fee hike.