Qantas to raise airfares, cut flights as fuel costs bite
Qantas will raise airfares and trim domestic flight routes as fuel prices stay high nine months after conflict in the Middle East erupted.
The airline will cut flights in Australia by 4 per cent in the first three months of 2027, it said on Friday, double the 2 per cent cut forecast in August.
Qantas is grappling with the effects of soaring fuel prices. James BrickwoodThe reductions will hit Qantas as well as low-cost carrier Jetstar.
In a statement, Qantas said it “will continue to adjust fares and capacity in response to higher fuel costs”.
The company’s fuel bill for the final six months of 2026 is now expected to be $3.75 billion, up from a previous forecast of $3.6 billion and $1.1 billion higher than for the same period last year.
Airlines have been struggling to contain the impact of fuel prices since the conflict kicked off in February this year, setting off a surge in the price of crude and jet fuel. Airlines have passed increases along to customers, put smaller planes on routes, reduced frequency and cut some routes altogether.
Qantas has continued to hedge fuel at about 85 per cent for fiscal year 2027.
Even with fare cut announcement, Qantas noted that “demand remains resilient as customers continue to prioritise travel”.
International demand for Qantas and Jetstar services “remains strong, supported by customers redirecting travel away from the Middle East”.
Routes via Singapore to London, and via Perth to Rome, have allowed Qantas to avoid the troubled Gulf region where airports and civilian infrastructure have been periodically attacked.
Domestic leisure demand “remains strong”, the airline said, while noting corporate travel (other than in the resource sector) and government travel were stable and were being “closely monitored”.
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