Qantas hikes fares, deepens cuts to flying as fuel costs bite

Qantas Airways is increasing air fares and making significant cuts to domestic flight schedules in early 2027, according to a November 6 report. The airline plans to reduce flying in Australia by 4% during the first quarter of the year, which is twice the 2% reduction it had previously anticipated in August. Both Qantas and its low-cost subsidiary Jetstar are implementing these schedule adjustments.

The airline's fuel expenses for the final six months of 2026 are now projected to be A$3.75 billion, a significant increase from the earlier estimate of A$3.6 billion. This forecast is influenced by the ongoing consequences of the Iran conflict, which has caused persistent increases in energy prices globally. The airline expects higher fares in Australia, where extensive distances between cities make air travel almost essential, to contribute to heightened cost-of-living pressures resulting from rising interest rates.

Qantas stated that it will continue to modify fares and capacity in response to the escalating fuel costs. Despite this, the company maintains that demand remains robust, as customers continue to prioritize travel.