SYDNEY, AUSTRALIA — Australia’s national carrier Qantas has unveiled plans to hike fares and cut flights across the country. The move comes as fuel costs continue to bite.
The airline said it planned to cut domestic services by four per cent in early 2027. The cuts will affect both Qantas and its low-cost subsidiary Jetstar.
Rising Fuel Costs
The decision follows higher oil prices due to the ongoing conflict in the Middle East. However, the war has redirected global routes and helped Qantas’ international demand.
Qantas’ projected fuel bill for the second half of 2026 is now at $3.75 billion. This is $150 million above earlier estimates.
The airline said it “has and will continue to adjust fares and capacity in response to higher fuel costs.” It also said it expects fuel prices to remain high in 2027.
Previous Cuts
In May, Qantas cut hundreds of flights due to the rising costs of fuel.
At the time, the airline said it was planning to cut 88 flights from its Melbourne to Sydney service. It also planned to cut 50 flights from the Sydney to Brisbane line and 31 flights from Brisbane to Melbourne.
The disruption was expected to last until June.
In a statement at the time, Qantas said: “Given the continued volatility in fuel prices and the global economic conditions, Qantas Group has reduced domestic capacity in the fourth quarter of the 2026 financial year by around five percentage points.”
Global Oil Markets
Global oil markets have been turbulent since the US and Israel carried out joint strikes on several key Iranian sites in February.
Iran retaliated by closing the critical Strait of Hormuz waterway. Before the war broke out, 20 per cent of all global oil traded passed through the strait.
International Expansion
While Qantas and Jetstar domestic services will take a four per cent knock, the carrier plans to expand its international routes by one per cent.
Qantas said demand remains “resilient,” with customers continuing to prioritise travel.
“International demand across Qantas and Jetstar remains strong. This is supported by customers redirecting travel away from the Middle East,” the airline said.
“Domestic leisure demand remains strong. Non-resources corporate and government travel remains stable and is being closely monitored.”
What This Means
The flight cuts and fare hikes will affect travellers across Australia. Domestic passengers will have fewer options and likely pay more for their tickets.
The situation highlights the impact of global conflicts on the aviation industry. Airlines are being forced to adjust their operations in response to rising fuel costs.
What Happens Next
Qantas and Jetstar will implement the changes in early 2027. Travellers are advised to book early and to monitor fare changes.
For now, the focus is on managing the impact of high fuel costs. The coming months will reveal whether oil prices will stabilise.
