Qantas flags fare increases and flight cuts as fuel prices surge

Qantas has announced fare increases and flight cuts due to soaring fuel costs caused by the Middle East conflict. The airline has extended hedging for approximately 85% of its annual fuel bill, expecting high costs to persist into the new financial year. Despite strong domestic and international demand, Qantas predicts fare hikes and flight reductions are imminent.

The Middle East war has reduced Qantas' annual profit by hundreds of millions. The Group has adjusted fares and capacity in response to higher fuel costs. Domestic flights for Qantas and Jetstar will be cut by four percent in 2027. Fuel costs are expected to reach $3.8 billion in the first half of the new financial year.