The West

Qantas terminal, Perth Airport.
Qantas terminal, Perth Airport.

Qantas will increase its international airfares this week by up to 5 per cent as the airline tries to claw back fares that have dropped by as much as 24 per cent in the past year.

The airline will lift first class and business class fares by 3 per cent on most routes except to the US where it faces intense competition from V Australia, United Airlines and Delta Airlines.

Economy and premium economy fares will jump by 5 per cent on all routes to tap the much stronger leisure market.

The airline has raised domestic fares over the past six months by up to 10 per cent on some routes.

Some see the fare hikes as signalling the end of the fare wars while other industry observers suggest that the cheap fares will return in February after the holiday season.

The West Australian

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