Qantas plans to cut domestic flying by 4% in the first quarter of 2027 as its expected fuel bill for the second half of 2026 rises to A$3.75 billion.
The planned reduction is twice the 2% domestic cut the airline forecast in August. In its Nov. 6 statement, Qantas put fuel spending for July through December 2026 at A$3.75 billion, compared with its earlier estimate of A$3.6 billion.
Qantas said it will adjust fares and flight schedules in response to higher fuel expenses. The airline described demand as resilient and said customers continue to make travel a priority.
Bloomberg reported that Qantas is raising fares and that both Qantas and its low-cost carrier Jetstar are scaling back schedules. The outlet linked the higher fuel outlook to the extended effects of the Iran war on global energy prices. It said costlier tickets could add to pressure on Australian households, where long distances can make air travel difficult to avoid, as interest rates rise.
