kabarsula Qantas to lift fares and trim domestic flying as fuel bill climbs bandar SLOT INDONESIA

Qantas will lift fares and trim domestic flying as its fuel bill for the second half of 2026 climbs to $3.75 billion.

Qantas will raise airfares and cut domestic flights as its fuel costs jump by more than $1 billion, the Sydney Morning Herald reported, nine months after the conflict in the Middle East erupted.

In a market update ahead of its annual general meeting, the airline said it would continue to adjust fares and capacity in response to higher fuel costs, but did not detail the fare rises, according to the SMH. The paper reported that domestic capacity cuts will accelerate from 1 per cent in the first quarter of 2027 to 5 per cent in the second quarter. Bloomberg, however, reported a 4 per cent domestic cut in the first quarter – double the 2per cent flagged in August – with both Qantas and Jetstar scaling back schedules.

The SMH reported the group’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 and $1.1 billion higher than the same period last year. Qantas remains about 85 per cent hedged for FY27.

International capacity growth is expected to hold at 2 per cent across the same two quarters, while Jetstar’s international capacity will move from a 2% reduction in the first quarter to 2% growth in the second, the SMH reported. Qantas said demand “remains resilient as customers continue to prioritise travel”, according to the paper, with international demand supported by customers redirecting travel away from the Middle East.

University of Sydney aviation professor Rico Merkert told the SMH the announcement reflected discipline rather than weakness, with Qantas prioritising yield and profitability over market share. He noted hedging protects Qantas more than unhedged US carriers, but that the benefit is not permanent.

Qantas chief executive Vanessa Hudson said the airline remains committed to fleet renewal, with the first Project Sunrise aircraft arriving in April and the first non-stop Sydney–London flight launching in October, the SMH reported.

Qantas will provide guidance with its first half results in February 2027.