Qantas Navigates Fuel Hikes, Reroutes Capacity

Qantas now forecasts jet fuel expenses for the second half of 2026 to range from Aus$3.1 billion to Aus$3.3 billion, a substantial rise from its previous Aus$2.5 billion projection. The airline attributes this increase to jet fuel prices more than doubling and remaining "extremely volatile" following the Middle East war.

Despite these cost pressures, Qantas reports a strong boost in demand for travel to Europe as passengers avoid Middle East routes. In response, the Group has strategically redeployed capacity from its US and domestic networks to increase flights to Paris and Rome.

This strategic shift is expected to drive international unit revenue growth by 4-6 percent year-on-year in the second half of 2026, double its prior forecast. Domestic flight revenue is also set to increase by approximately five percent, up from a previous expectation of three percent.

Qantas continues to monitor the dynamic environment and maintains optionality to implement further actions to mitigate fuel cost increases over time.