SYDNEY, April 14 (Xinhua) -- Australian flag carrier Qantas said on Tuesday that it will cut domestic services and increase fares amid rising fuel prices driven by the conflict in the Middle East.
In a market update on Tuesday, the Qantas Group said that it has revised its estimated fuel cost for the second half of 2026 from 2.5 billion Australian dollars (about 1.77 billion U.S. dollars) to as much as 3.3 billion Australian dollars as a result of the global oil supply crisis.
To offset higher costs, it said that domestic capacity across Qantas and budget carrier Jetstar in the fourth quarter of 2026 has been reduced by around five percentage points.
"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. We are closely monitoring the situation given the ongoing uncertainty in global fuel supply chains," it said.
Qantas Group has taken action to mitigate the impact of the conflict in the Middle East, including international network changes, capacity adjustments and fare increases, it added.
It said that Qantas has continued to see strong demand for travel to Europe and has redeployed capacity from the United States and the domestic network to increase flights to Paris and Rome. ■