Business · Companies · 22 hrs ago
Qantas and Jetstar to raise fares and cut Australian flights
Qantas plans to raise fares and cut flights in Australia as fuel costs climb.
The changes will affect its premium airline, Qantas, and its low-cost carrier, Jetstar.
The airlines will reduce domestic flying by 4% in the first three months of 2027, twice the cut Qantas forecast in August.
Qantas now expects its fuel bill for the second half of 2026 to reach $3.75 billion, up $150 million from its earlier estimate.
Higher fuel prices are linked to the prolonged impact of the war in Iran, which has pushed energy costs up around the world.
The fare rises could add to cost-of-living pressures for Australians, especially because flying is often needed to travel between distant cities.
Qantas says travel demand remains resilient, and it expects fuel prices to stay high in 2027.
Qantas will cut flying in Australia by 4 per cent in the first three months of 2027 and raise fares as fuel costs rise.
The reductions will affect both Qantas and its low-cost unit, Jetstar.
The 4 per cent cut is double the 2 per cent reduction Qantas forecast in August.
Qantas expects its fuel bill for the final six months of 2026 to reach $3.75 billion, $150 million above its previous estimate.
The airline said demand remains resilient, with strong international and domestic leisure demand.
- Who
- Qantas and its low-cost unit Jetstar.
- What
- They will reduce flying in Australia by 4 per cent and raise fares.
- When
- The flight cuts will take place in the first three months of 2027.
- Where
- Australia.
- Why
- Rising fuel costs are weighing on profitability. Qantas said it will adjust fares and capacity in response.
This story does not have two clearly opposing sides.
Qantas forecast a 2 per cent cut to flying.
Qantas announced it would cut flying in Australia by 4 per cent in the first three months of 2027.
Qantas projected a fuel bill of $3.75 billion, up from its previous forecast of $3.6 billion.
- Flight reduction
- 4 per cent
- Period
- First three months of 2027
- Previous forecast
- 2 per cent cut in August
- Fuel bill forecast
- $3.75 billion for the final six months of 2026
- Increase from previous estimate
- $150 million
3 sources
What people are saying
The group has and will continue to adjust fares and capacity in response to higher fuel costs
Demand remains resilient as customers continue to prioritise travel