SYDNEY, Nov. 6 (Xinhua) -- Australian airline Qantas said on Friday that it would continue adjusting airfares and flight capacity in response to higher fuel costs, as fuel prices are expected to remain elevated through the 2027 financial year.
The Qantas Group said its total fuel costs for Qantas and budget carrier Jetstar in the first half of financial year 2027 are now expected to reach approximately 3.75 billion Australian dollars (about 2.6 billion U.S. dollars), up from the 3.6 billion Australian dollars projected in August.
The group also said domestic capacity across Qantas and Jetstar in the third quarter of financial year 2027 would be reduced by 4 percent compared with the same period a year earlier, double the 2 percent reduction forecast in August.
"Based on forward curves, fuel prices are expected to remain elevated through FY27," the carrier said in a statement. "The Group has and will continue to adjust fares and capacity in response to higher fuel costs."
The Qantas Group said it had hedged approximately 85 percent of its fuel requirements for the financial year 2027, predominantly against Brent crude oil prices.
It also said total unit revenue for both its domestic and international businesses was each expected to grow by 8 to 10 percent in the first half of financial year 2027 compared with the corresponding period a year earlier, unchanged from the guidance provided in August. ■