Qantas is hiking airfares and making deeper cuts to its domestic flight schedules early next year to tackle rising fuel prices.
The airline will reduce flying in Australia by 4 per cent in the first three months of 2027, it said on Friday. That’s double the 2 per cent cut that Qantas forecast in August. Low-cost unit Jetstar and Qantas, the premium brand, are both scaling back their schedules.
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.
The fresh outlook reflects the prolonged impact of the war in Iran, which has led to a stubborn jump in energy prices around the world. Higher fares in Australia, where vast distances between cities make flying almost unavoidable, would add to growing cost-of-living pressures stemming from rising interest rates.
“The group has and will continue to adjust fares and capacity in response to higher fuel costs,” Qantas said in its statement.
“Demand remains resilient as customers continue to prioritise travel.”
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