Think buying car fuel is expensive? Imagine if you had to fill a plane

A regional airline has temporarily cut some Tasmanian services as a result of rising fuel costs.

Key points:

• Sharp Airlines has temporarily suspended Saturday services to King Island and Flinders, as well as Wednesday services from Essendon to King Island
• Airlines say facing rising fuel costs, the only other alternative is to increase ticket prices
• Flights are scheduled to restart in September

Sharp Airlines said the price of aviation turbine fuel had increased by more than $1 per liter in 12 months, 40 cents of which came in the past two months.

Managing Director Malcolm Sharp said the airline had chosen to reduce flights rather than charge travelers.

“For our customers, we try to find ways to make it at least less painful,” he said.

“The easiest thing to do is raise prices, but we think that will have a bad impact on demand.

“This is a difficult time.”

The war in Ukraine has pushed up oil prices around the world.(ABC Capricornia: Rachel McGhee)

The airline said it would suspend Saturday services from Launceston and Burnie (Wynyard) to King and Flinders islands from late July to mid-September.

Essendon’s service to King Island on Wednesday morning is also scheduled to be suspended until demand increases.

Passengers who have already booked have been offered alternative flights.

The airline said all other services from Hobart, Launceston, Burnie and Essendon to and from the islands would be maintained.

Sharp expects Saturday’s service to resume in September.(ABC News)

‘This is what it is’

Sharp said he did not expect the change to have a major impact on travelers.

“By doing one service a week, the passenger can still travel on Friday or Sunday,” he said.

“So it’s not only income that we still collect, we also don’t have expenses.

“That doesn’t mean the journey will be hampered, it just means that they will be a little more organized.”

Par Avion owner Shannon Wells said prices had increased but her company should not cancel the service.(ABC News: Maren Preuss)

Aviation tourism company Par Avion has also been affected by the rising costs.

Managing Director Shannon Wells said the service was not canceled because the airline operates on a different model than most other airlines.

“We are not reducing service but as a consequence we have increased the prices of some rides,” Wells said.

“Since we’re basically an on-demand service, we don’t have to cut down on service — but of course the price goes up, which makes it less attractive.

“It’s not just fuel; wages and insurance are going up too, so it’s a tricky game, but that’s how it is.

“What I’m worried about is the COVID stuff. I’m afraid we’ll face another skill shortage because of the quarantine… I don’t think it’s over yet.”

Costs continue to soar

Earlier this year, a fuel surcharge was added to the cost of Sharp Airlines’ tickets but costs to businesses continue to rise.

Mr Sharp said the war in Ukraine had an impact on fuel supplies, but he hoped the worst was over.

“There are a number of reasons and none of which we can control. We just have to live with it,” he said.

Other airlines across the country, including Qantas, have also taken similar steps to Sharp, cutting flights, rather than keeping costs down.

“This reduction, combined with strong international and domestic travel demand, is expected to help substantially recover high fuel costs,” Qantas said in an update to the stock market.

“The customer impact of this schedule change is expected to be minimal.”

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