Qantas Airways Ltd. is raising air fares and making deeper cuts to its domestic flight schedules early next year to address rising fuel prices. The airline said Friday that it will reduce flying in Australia by 4% in the first three months of 2027, double the 2% cut it forecast in August. Both Jetstar, its low-cost unit, and Qantas, the premium brand, are scaling back their schedules.
The company's fuel bill for the final six months of 2026 is now expected to reach A$3.75 billion ($2.6 billion), up from a previous forecast of A$3.6 billion. The revised outlook reflects the prolonged impact of the war in Iran, which has driven a stubborn jump in energy prices around the world.
Higher fares would weigh heavily on Australians, where vast distances between cities make flying almost unavoidable. The increases would add to growing cost-of-living pressures already 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 prioritize travel."
Source: Bloomberg Markets · Summarized by HeadlinesBriefing