Unhedged Qantas has no plans to pass on its gains from the low oil price to passengers in a restructuring of its international fares that will still include fuel surcharges. Frequent flyers however will be able to cover the fuel surcharge using points when previously they were required to pay cash to cover fuel and taxes when paying with points.
The Australian Competition and Consumer Commission is investigating whether Qantas and Virgin Australia have misled consumers by maintaining surcharges on international flights despite plummeting oil prices.
Virgin has already announced that it will reduce the price of an economy ticket to the US by $40.
Qantas chief executive Alan Joyce said the fall in oil prices would allow the airline to invest in its international operations - including buying new aircraft and upgrading lounges.
"We are seeing significant benefit coming through on fuel and that will help our international business get back into profits and it will help Qantas invest in the customer," he said.