Qantas has increased fares, cut flights and made changes to its international network to mitigate the impact of the Middle East conflict.
In an update issued to the ASX, Qantas said its estimated fuel cost for the second half of 2026 was now $3.1 – 3.3 billion off the back of a doubling in fuel prices.
“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 Qantas ASX statement said.
“We are closely monitoring the situation given the ongoing uncertainty in global fuel supply chains.”
Qantas will cut the number of domestic flights by five percent in the last quarter of 2026 because of the continued volatility in fuel prices, and the global economic conditions.
Affected Qantas and Jetstar customers are being contacted directly and offered alternative flights or a refund.
International revenue for the group is expected to grow four to six percent in the second half of 2026.
The figure includes half of the projected revenue from tickets for the fourth quarter that were sold prior to the conflict commencing.
Domestically, growth for the second half of 2026 is expected to be five percent, with six percent growth for the fourth quarter.
These outlooks assume current demand levels are sustained both domestically and internationally.
The 2026 capital expenditure will be at or below $4.1 billion, at the bottom end of the previously guided range.
The Qantas ASX statement said since the Group’s last 1H26 financial results, jet fuel prices had more than doubled and remain highly volatile.
While Qantas does not operate to the Middle East, it has provided additional support to customers booked to travel on partner airlines, including more flexibility to move flights or receive a refund, the statement said.
“Qantas continues to see strong demand for international travel to Europe as customers seek alternative routes,” the statement said.
“In response, the Group has redeployed capacity from the US and its domestic network to increase flights to Paris and Rome.”
