Qantas said Tuesday it will cut domestic capacity and raise fares after lifting its fuel‑cost forecast because of the Middle East conflict and the resulting strain on global oil supplies.
The airline said its estimated fuel bill for the second half of 2026 has been revised from 2.5 billion Australian dollars to as much as 3.3 billion Australian dollars. To offset the increase, Qantas and its low‑cost arm Jetstar will reduce domestic capacity in the fourth quarter by about five percentage points.
The company said it is working with the government and fuel suppliers, who have assured the carrier of supply through April and into May, but noted continued uncertainty in global supply chains.
Qantas said it has already made international network changes, adjusted capacity and increased fares in response to the conflict. The airline said demand for Europe remains strong and that it has shifted capacity from the United States and domestic routes to add flights to Paris and Rome.