Qantas will slash domestic capacity over the next two months and likely raise airfares as soaring fuel prices threaten a $500million hit to full-year profit.
‘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 5 percentage points,’ a statement on Tuesday said.
‘Affected Qantas and Jetstar customers are being contacted directly and offered alternative flights or a refund.’
Although around 90 per cent of its crude oil supply is hedged, jet refining margins have surged.
As a result, Qantas estimated that it could be paying between $3.1billion and $3.3billion for the six months up to June 30, the second half of this financial year.
‘The group is working closely with the government and jet fuel suppliers, who continue to provide confidence in fuel supply for the remainder of April and well into May,’ the airline said.
‘We are closely monitoring the situation, given the ongoing uncertainty in global fuel supply chains.’
More to come.
Qantas will be axing some domestic flights as oil price hikes hit the aviation sector (stock)
