Qantas to raise airfares, cut flights as fuel costs bite

Résumé détaillé

Qantas is hiking airfares and making deeper cuts to its domestic flight schedules early next year to tackle rising fuel prices.

Qantas will raise airfares and trim domestic flights as its fuel costs jump by more than $1 billion, nine months after the conflict in the Middle East erupted.

Domestic capacity reduction and route cuts are accelerating from 1 per cent in the first quarter of 2027 to 5 per cent in the second quarter, the airline said, but international flight capacity expansion is expected to remain firm at 2 per cent across the same period.

“[We] will continue to adjust fares and capacity in response to higher fuel costs,” the airline said in a market update ahead of its annual general meeting with shareholders. It did not disclose details of the fare rises.

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.

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